Chinese efforts to correct the economic deficit affecting everywhere else has led to deleveraging, something that foreign players have taken notice of. Bloomberg reported, while it didn't help domestic players, foreign investors have entered China's property market by way of it. Blackstone and CapitaLand led the way.
These two might be heading a resurgence in purchases which was worth $9 billion nationwide, half of all sales in Shanghai. This foreign investment upswing aided some companies and left others, like the struggling HNA Group Co., to find ways to improve their finances. Most of them have resorted to selling off properties that they've purchased, whether local or foreign.
In China, most companies have foreign investors lining up for it. Colliers International Group Inc's Betty Wang has said that there have been some foreign people who wanted to be the first to know about a company for sale. If they learn that there are actually several companies or business competitors lining up for a purchase, this is an upsetting fact for them.
Chinese investors are also pulling back from investing in other areas in foreign properties, other than venture capital funding. CNBC reported that Chinese foreign investments in the US have declined. From 2016, investments have dropped from $46 billion to $29 billion up to just $4.8 billion. In contrast, however, venture capital funding has recorded a new high of $3.1 billion.
2016 values were high due to the property investments boom, as well as how the Chinese economy rallied. Total US assets which were invested into by Chinese investors amounted to $13 billion of properties. These were reversed in 2018 where, among other issues, Chinese policies encouraged the yuan to be invested domestically rather than overseas.
Other companies which have assets for sale included Anbang, with a number of US luxury hotels up for grabs; the aforementioned HNA Group with their assets; Fosun International, which is putting up a significant state in NY 28 Liberty for grabs; and Dalian Wanda Group, which is considering selling off their stake in film company Legendary Entertainment.
Offshore buyers would do to strike now, rather than later. The weakened yuan provides them with an avenue to buy assets and properties at a discounted price. This, coupled with the policies that are hindering Chinese investors from diversifying, makes properties easier to buy for a businessman. It also makes more Chinese investors sellers rather than buyers.
