The Business Spectator has published a balanced review of Chinese real estate purchases in the global markets, written by Florence Chong.
We are talking here about Chinese institutional capital, a far cry from the sometimes dubious sources of money that have been channelled from China into off-the-plan apartments and suburban homes in Australia and elsewhere.
The biggest pool of available capital belongs to China’s insurance companies. Since 2014, they have been able to invest up to 30 per cent of their total investible funds in infrastructure or real estate assets.
…in reality, the Chinese institutions have targeted three regions — the UK, the US and Australia — as their preferred destinations. They are looking for deep, transparent markets in stable, developed economies.
n the first half of this year, Chinese institutions invested $7.8bn globally, and they are on track to spend up to $20bn before the end of 2015. If they reach that number, Chinese institutions will have doubled their spending in just two years.
The full article can be found here China’s wave of global property investment is just beginning (no pay wall for this article).
Well worth a full read.