Chinese Investors Change Focus In Wake Of New Government Regulations

By Julie Litman

With China’s government clamping down on outbound investment, Chinese investment in U.S. commercial real estate assets is down significantly so far this year.

Instead of directly investing in real estate, many Chinese investors are turning toward tech and biotech and investing in incubators, according to Xinyi McKinny, Cushman & Wakefield senior managing director of China direct investment for the San Francisco Bay Area and Los Angeles.

R&D facilities and incubator spaces will receive additional capital allocation as these types of investments are supported by the government. Investments that lead to the export of China’s technology and equipment, improve the country’s research and manufacturing and improve energy and resources are highly encouraged by the government. Commercial real estate investments, on the other hand, will be restricted.

Chinese investment into the U.S. already has declined significantly and will not likely reach the same levels as 2016.

During the first half of 2017, Chinese investment in the U.S. totaled $4.17B, which is 26% of the $15.96B in investment during the first half of 2016, McKinny said. Total Chinese investment globally totaled $15.82B during the first half of 2017 compared to $23.4B during the first half of 2016.

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2017-09-25T10:52:14+00:00 September 10th, 2017|Categories: In the News|0 Comments