Chinese direct investment in the EU was $108bn last year (2013). The U.K. was its largest market with a focus on real estate. Over the most recent nine-year period Chinese investment into U.K. real estate was over $7.1bn. Recent Chinese direct investment in the U.S. was also focused on real estate. Yesterday it was announced that the Waldorf Astoria hotel in New York City was sold to Anbang Insurance Group of China for nearly $2bn. What are two implications? One, Chinese investors have a lot of money and they want to invest it outside of China, into developed countries. Two, real estate is perceived as a safe and understandable investment. These investments are by both state-owned companies and private ones. One concern. Is this a repeat of the Japanese investment into U.S. real estate in the 1980s?
“China’s Huge Bet on European Assets.” Financial Times (Oct. 7, 2014).
Chinese Investment into the U.S. 2d Quarter 2014. (Rhodium Group Website, July 2014).
“Waldorf Astoria Sold for $2Billion.” New York Times (Oct. 7, 2014).