Tuesday, October 4, 2016

Chinese capital continues to escape country’s borders

While Chinese investment is growing in the United States, the flow of money fleeing China’s shores is continuing unabated.

China saw a net loss of $51 billion in August, according to the Wall Street Journal, marking two years of continued net capital outflow from the country.
Year-to-date, China’s net losses have reached about $400 billion, with outflows peaking in January when nearly $143 billion left the country in a single month.
The trend has contributed to a weaker Chinese yuan, which had its value against the dollar drop 3 percent this year. It’s also caused some Chinese investors to feel the yuan’s downward trajectory will continue, the Journal reported, making the U.S. dollar a more attractive alternative to store their wealth.
In the real estate realm, Chinese money has not yet made as big as splash in Miami as it has in New York. However, as Chinese investors increasingly tackle ground-up development stateside, several major projects have appeared in the city with Asian backers.
China City Construction is planning a mixed-use project on land it owns in Brickell, as well as aluxury condo in Miami Beach. And ASRR, a publicly-traded Israeli company, brought on investors from China and Hong Kong to help it fund the acquisition of an entire block in Miami’s Arts & Entertainment District for $33 million. [Wall Street Journal] — Sean Stewart-Muniz
Original Content The Real Deal

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