Skip to content

Economy/Resources

Since the Start of 2017, Chinese Overseas Real Estate Investment Declined 84 Percent

Hong Kong’s Mainland-backed Phoenix New Media recently reported that, based on an analysis that Morgan Stanley Chase completed, the commercial real estate markets in New York, Sydney, and London may face serious challenges in the next two years. The primary cause of this warning is that Chinese investors have started withdrawing from overseas real estate markets. The Chinese government is tightening up capital control and commercial loans very quickly. Statistics showed that, since the beginning of 2017, the total of Chinese overseas real estate investment has declined 84 percent. The expectation is that an additional 18 percent drop will continue into year 2018. The same 2017 number that the Chinese Ministry of Commerce released was an 82 percent decline. According to statistics that the Chinese banking industry published, in the first half of this year, China’s total direct investment overseas showed a decline of 45.8 percent, to US$48 billion. In the second quarter, real estate pricing in Manhattan had already dropped 25 percent.

Source: Phoenix New Media, August 14, 2017
http://finance.ifeng.com/a/20170814/15580536_0.shtml

Hurun Research: Wealthy Chinese Immigration Trend Is Growing

The well respected Chinese wealth ranking institute Hurun Research recently published its 2017 immigration report on the Chinese population with wealth over RMB 20 million (around US$3 million). The report showed that 84 percent of the surveyed sample worried about the depreciation of the Chinese currency, which is a 50 percent increase from the same number last year. The United States has been the top choice of immigration destination for the wealthiest Chinese for three years in a row. This year Canada surpassed Britain to become the second choice. Britain is now the third choice and Australia remains number four. In the United States, Los Angeles is the top destination city, followed by Seattle, San Francisco, and New York. The report found the primary drivers for immigration are education quality (76 percent) and environmental pollution (64 percent), followed by “ideal community environment” (53 percent) and “medical care quality (29 percent).” The report also shows that a long waiting list is the number one obstacle to those wanting to migrate, followed by language barriers. Balanced global wealth distribution and investment is a focal point for the wealthy population. This year, tight foreign exchange control is rapidly becoming a new major concern of these people.

Source: Hurun, July 15, 2017
http://www.hurun.net/CN/Article/Details?num=A42F47981E13

Local Officials Will Have Lifetime Accountability for Government Debt

According to an article from Yicai.com, in order to reign in the exploding local government debt that has been growing out of control, Xi Jinping recently announced that the municipal government must strictly control the debt ceiling and the related officials must have lifetime accountability for the debt. Xi made the announcement during the finance conference which was held last week. The lifetime accountability will prevent the officials from shirking their responsibility once they have retired, According to the article, local debt has risen rapidly in recent years because officials seek GDP growth as a measure of their political achievement. The article went on the report that the Ministry of Finance has set up a debt ceiling in order to ease the local debt risk. By the end of 2016, local debt was at 15.32 trillion yuan (US$2.27 trillion) which was less than the 17.19 trillion (US$2.54 trillion) debt ceiling. The debt ceiling for 2017 was set at 18.82 trillion yuan (US$2.78 trillion). Meanwhile, in 2014, the State Council started to include the local debt as one of the measures for party official’s political achievement.

Source: Yicai.com, July 16, 2017
http://m.yicai.com/news/5316629.html

Pan Asia Nonferrous Metals Exchange Is a State Ponzi Scheme

The Pan Asia Nonferrous Metals Exchange was once an attractive investment platform that the government promoted in 2011. Over 220,000 people invested a total of 43 billion yuan (US$6 billion) in it. However, in 2015, it turned out that it was a Ponzi scheme and most people lost their money.

Investors have repeatedly appealed to both the Yunnan Provincial government and the central government to request help in order to recover their losses, but, so far, the government has provided no response.

Recently, a video was posted on YouTube with edited video clips promoting Pan Asia from the China Central Television (CCTV). These showed that the government was responsible for crediting and promoting Pan Asia in its earlier years. The video clips showed CCTV’s vigorous introduction of the nonferrous metal exchange platform, broadcasting Pan Asia’s collaboration with CCTV, and promoting Pan Asia’s business.

Source: Radio France International, September 24, 2016
http://cn.rfi.fr/中国/20160924-泛亚诈骗:国家导演的庞氏骗局

Caixin: Chinese International Travelers Significantly Changed Their Spending Pattern

The well-known Chinese financial news media group Caixin recently reported that Chinese international travelers have been labeled as major spenders. The United Nations World Tourism Organization’s (UNWTO) 2016 numbers showed that Chinese consumer’s international spending reached US$261 billion, which was more than twice the U.S. total (the U.S. spending was ranked number two). However, international consulting company Oliver Wyman just released a study showing some significant changes in the pattern of Chinese’ international spending habits. The report showed that, starting in 2016, Chinese international tourists spent only 33 percent in their total overseas expenditures on buying physical products. The same number was 41 percent in 2015. The statistics also showed that those who are still interested in buying physical products are among the lower income population. The spending trend is shifting to the categories of “Sightseeing” (ranked number one) and “Entertainment” (ranked number two). The research also showed that Chinese travelers depend heavily on Chinese language website reviews and on security incident news about the destination countries.

Source: Caixin, July 12, 2017
http://international.caixin.com/2017-07-12/101114417.html

China’s SOEs Are the Largest Oil Drilling Contractors in Kuwait

According to an article that China.org published, China’s State Owned Enterprises (SOEs) broke through the domination that the U.S. and the European countries held and became the largest oil drilling contractors in Kuwait, which is considered a strategic partner of China’s “one belt one road” project. The SOEs have built 53 teams in Kuwait and employ over 3,000 Chinese and foreign workers. They own 53 drillers and hold 45 percent of the oil drilling market share. The article claimed that by the end of first quarter in 2017, China’s SOEs will be responsible for a total of 64 projects in the amount US$13.7 billion in Kuwait. The projects range from oilfield services, exploration, refinery, housing, and infrastructure, to telecommunications.

Source: China.org, July 16, 2017
http://news.china.com.cn/2017-07/16/content_41222830.htm

Free High Quality Images Download Free Stock Images Download Free Images Free Stock Photos & Images Beautiful Free Stock Photos (CC0) Free stock photos