Earlier this year, Chinese companies have declared their foreign investment plans which include buying foreign companies overseas for over $68 billion dollars.
Regardless of the economic instability in Europe due to the referendum, the Chinese investors are not treated by the Brexit. According to the Juwai Brexit Survey, about 75% of Chinese participants have stated that the Brexit decision will not affect their investments, and 46% of those participants indicated that it will only increase demand in the Britain’s property market.
The weaker pound and the dropping property prices will encourage more Chinese investors to take over the property market in Britain. Chinese investors have increased their investment by 60% more than last year.
In North America, Chinese investors are flooding the US and Canada’s property market. An estimated $28.6 billion has been invested by the Chinese in the US real estate. On the other hand, the Chinese investments are accounted for more than $12.7 billion in Vancouver.
Why are the Chinese investing heavily overseas? The economic meltdown in China along with other reasons such as pollution, devaluation of the yuan, and collapsing markets are causing many Chinese investors to explore all possibilities in other countries.
The latest overseas deals that shocked many are the $43 billion offer by ChemChina to buy the Swiss chemicals firm Syngenta, an offer of $5.4 billion by Haier to buy General Energy, and another offer of $4.87 billion made to Telex Corporation by Zoomlion Heavy.
In Australia last year, Chinese investors have bought properties at a record rate of $12 billion Australian Dollar causing prices to fluctuate in the property market. The Chinese government has applied new rules to limit the money flow outside of China. According to China's law, individuals can take a maximum of $50,000 out of the country, and even banks have applied this limit to all accounts who desire to transfer money outside of China.
Although Australia and Canada offer the safest investment and the most stable economies, Chinese investors are now limited by their government to invest anywhere in the world.
