Despite efforts of the government to keep capital from going out of the country, the outward movement of Chinese investment is triggered by the government-induced devaluation of the Chinese currency, Yuan, and the volatile stock market conditions in August.
Chinese investors will continue to love the U.S. real estate. Some are speculating that the increasing interest of Chinese investors over the U.S. real estate is causing them to make even last minute pull out from European property markets.
According to SCMP, information from global property consultancy CBRE shows that the total Chinese investment in the U.S. commercial real estate is US$3.7 billion in the first half and that is more than 1.5 times of the annual cash flows in 2014. On the other hand, investors still continue to invest in London but data shows that there is a slight decrease in their investment in the British commercial property industry.
It would not be much of a worry until recently, three Chinese companies made the last minute pull out from a London deal. According to the UK Property Weekly, a Shanghai-based private property conglomerate Shenglong Group had withdrawn from a £195 million deal to acquire Thames Court office tower in the City of London.
UK Property Weekly also reported the mainland's Anbang Insurance Group, the company that bought New York's Waldorf Astoria hotel for US$2 billion last year, abandoned its plan to buy one of the tallest buildings in London's financial district, the 46-storey Heron Tower.
Then according to a South China Morning Post Sunday report, China Minsheng Investment, the China's largest private investment fund, withdrew from a £1.7 billion integrated development in East London, seven months a letter of intent was signed with the project's owner in Shanghai.
But according to Fred Richardson, a director at Hanover Private Office, which helps Chinese acquire properties in and near London said that he doesn't believe that there is a trend after the three incidents. And the chairman of a private Chinese developer, according to SCMP, said that he will be announcing a new investor to transform Royal Albert Dock into what was described as the city's third financial center.
