China’s foreign investments fall in 2018
Among the Asian countries, China was the country with the highest decreasing foreign investment in the last year. The share of Chinese real estate investments in Asia fell almost 80 percent.
According to CBRE Group, real estate investment advisor, China’s foreign investment in Asian countries decreased by a percentage. Many Chinese investors sold their property in abroad to support the country’s economy.
According to a report by CBRE in March, total real estate investments in Asia fell 36 percent year on year. In 2018, investments decreased to US $ 53.8 billion. According to data released, Chinese investments fell to $ 7.5 billion.
“Chinese investors transitioned to net sellers to strengthen balance sheets and recycle capital for deployment into future outbound investments,” CBRE says.
According to Leo Chung, the firm’s associate director of research for Asia Pacific, the pullback from China’s investors was not “entirely unexpected”, saying in the report that the sell-off “encouragingly created opportunities for new strategic investors to amplify offshore investment activities”.
There are some reasons why Chinese investments are so low. Experts among the reasons for the decrease in investments count Beijing’s growing corporate debt and capital outflows, as well as tightening controls on overseas investments.
In contrast, Singaporean and Korean investors have increased their external real estate investments last year.
Singaporean investors increased their foreign investments in 2017 from $ 20.9 billion to $ 21.6 billion. The investments of the Koreans increased from $ 6.3 billion to $ 7.3 billion.
According to Tom Moffatt, CBRE’s head of capital markets for Asia, “Asia-based investors remain hungry for offshore acquisitions, but will employ a more selective strategy in their overseas purchase activities”.
“The hedging costs into certain countries are also impacting investing flows for many outbound investors,” Mr. Moffatt says in the report.
Sevdenur Demir / [email protected]