Safe havens: global real estate assets of Chinese companies

Chinese companies injected over $10 billion in overseas commercial property in 2014, and the purchase spree is still going on. The foundation for this trend is the 2008 financial crisis when real estate price in th US and Europe slumped dramatically, creating a price advantage compared to the sharp property appreciation happened recently in China. In the mean time, Beijing also makes overseas investment easier for Chinese companies by increasing overseas investment approval limit from $100 million to $1 billion in 2013, and eliminating prior approval requirement for most overseas investment from 2014. Chinese institutional investors for US real estate market include Chinese Sovereign Wealth Funds, insurance companies, State-owned companies and private companies. CKGSB KNOWLEDGE has more.