Mass investment from the Chinese in the United States

Wealthy Chinese and China-based expatriates enjoy a party with an "old Beijing" theme at the Capital Club in downtown Beijing for high-rollers Oct. 27, 2012 in Beijing, China. They arrived in their BMWs, Audis and Mercedes-Benzes, some dressed in traditional Chinese clothes for the themed party. Some gambled with chips, playing traditional Chinese gambling games. The evening ended with a lucky draw with grand prizes like Caribbean cruises. The party ended around midnight, with some patrons, Chinese and expatriate then heading to the club's bar for a cigar and drink of red wine, whisky or vodka.

The Chinese economy is in a transitional phase. The GDP of China slowed down dramatically in 2009. The banking system is over-leveraged with credit growth whilst industrial production/retail sales are showing signs of stabilization.


Chinese looking for valuable assets overseas

After the slowdown of the Chinese economy, Chinese investors are looking to invest in foreign assets, more specifically in real estate. Consequently, according to the report made by Asia Society and Rosen Consulting Group, Chinese investors are becoming the biggest investors in real estate in the United States with an input of billions into the market. They are actively looking for foreign assets overseas.

After a substantial peak of investments in residences and commercial real estate in 2015, the total level of investment over the last 5 years from the Chinese reaches $110 billion dollars.

Otherwise, between 2010 and 2015, the Chinese invested more than 17 billion dollars in commercial real estate, with half of the investments taking place in 2015. In addition, more than 93 billion dollars has been invested in the American real estate industries, notably, Los Angeles, Seattle, San Francisco and New York (where Anbang Insurance invested more than 1.95 billion euros).


Chinese business groups like Greenland and Fosun have been really active in the acquisition of residential and commercial real estate, including the General Motors building, Pacific Park, 717th Avenue, and even 1 Chase Manhattan Plaza to name a few.

With all these investments in the American market, the best scenario is likely. This mass investment is not about to slow down, we would even see an increase in terms of investment. The economic indicators on long-term investment stay strong with rich investors, looking for lucrative placement opportunities and low-interest rates.

In this context, some doubts are raised by skeptics. Some people think real estate will continue to develop at a slow pace. Morgan Stanley however thinks real estate will slow down this year, in comparison with the growth forecast of 5% announced. The Institute of Urban Land believes there will be a decrease in national growth during the next 3 years.

There are also some doubts about the increase of the Federal Reserve rate, but regarding the low-interest rate, the capital circulating in the real estate market will keep increasing in the next few years. In the context of the wider global economy, the Chinese bringing assets to the United States (one of the most stable and transparent markets in the world) is also likely to strengthen the Chinese economy.

Among the Chinese investors, who are the most important?

Apartment building; Shutterstock ID 152561363; PO: cat Overman; Job: blog post

We can identify several different Chinese investors in the market. Firstly, the biggest acquisition group is composed of investors, who are looking for assets offering a good return on investment. Among these investors are some Chinese working on Chinese real estate, like Greenland and Wanda. They would like to build residential and commercial buildings. There are finally business groups like Fosun or HNA, who have diversified abroad with an eye on the return on investments and potential synergies in relation to their other assets.

In spite of their fear and concerns about the real estate market in the United States, there are not any signs of a slowdown of the market, and investments will keep increasing in the future.

How to catch these Chinese investors?

Good question. Reply here.

Chinese investors are Crazzy 

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