3 ms·

China is overflowing with investment money and its findings home in properties around the world with stability, reliability and great potential for returns. Why

China is overflowing with investment money and its findings home in properties around the world with stability, reliability and great potential for returns. Why should this be concerning? I bet one can make similar article on foreign investments in China.

20171026 9y ago
You can't make a similar article because foreign investments are tighly controlled except for cases where business processes or IP can be studied and eventually expropriated. No investment fund in the west would be able to just walk into China and start buying up real estate, infrastructure, and large private enterprises.
throwaway2048 9y ago
Foreigners cannot buy real estate in china.
- seanmcdirmid 9y ago
  Untrue. It depends on the city, but in Beijing you can buy (given the Chinese definition of buy anyways) a property after being resident for 5 years.
  - shagmin 9y ago
    Can you buy a property without being a resident though? From a quick search, I found a site stating that you must live in the house and cannot buy one for other reasons. This contrasts wildly with anecdotes I read about with Chinese investors in places like Vancouver.
    - seanmcdirmid 9y ago
      No, you must be resident. Every city has its own rules though, I only know those for Beijing. There could be some second/third tier cities where speculation by foreigners is possible.
mac01021 9y ago
Why is China overflowing with investment money? Where does it all come from?
- imtringued 9y ago
  Simplification: When americans and europeans buy chinese products then china has dollars/euro and we have physical goods. Dollars/euros can only be used to invest into usa/european companies or to buy usa/european products.
  - pzone 9y ago
    On top of that: Chinese financial markets are strictly controlled and the rates of return on safe investments like bank deposits are artificially kept down. Chinese citizens have very few trustworthy investment options outside of housing or sole-proprietor entrepreneurship, and the latter is only feasible for the politically connected.
    - monocasa 9y ago
      Are non politically connected Chinese citizens sitting on any money to invest?
- cangencer 9y ago
  https://tradingeconomics.com/china/current-account https://tradingeconomics.com/china/current-account
- r00fus 9y ago
  As I understand it, China doesn't allow speculation in anything other than real-estate and Chinese can't buy property in China (it's more of a grant from the state). So there's a lot of money that can't be invested locally or in financial vehicles (ie, 401k).
  - seanmcdirmid 9y ago
    There is the Chinese stock market, but it’s lost most of its credibility as being heavily vested in insider trading.

20171026 9y ago

You can't make a similar article because foreign investments are tighly controlled except for cases where business processes or IP can be studied and eventually expropriated. No investment fund in the west would be able to just walk into China and start buying up real estate, infrastructure, and large private enterprises.

throwaway2048 9y ago

Foreigners cannot buy real estate in china.

seanmcdirmid 9y ago
Untrue. It depends on the city, but in Beijing you can buy (given the Chinese definition of buy anyways) a property after being resident for 5 years.
- shagmin 9y ago
  Can you buy a property without being a resident though? From a quick search, I found a site stating that you must live in the house and cannot buy one for other reasons. This contrasts wildly with anecdotes I read about with Chinese investors in places like Vancouver.
  - seanmcdirmid 9y ago
    No, you must be resident. Every city has its own rules though, I only know those for Beijing. There could be some second/third tier cities where speculation by foreigners is possible.

mac01021 9y ago

Why is China overflowing with investment money? Where does it all come from?

imtringued 9y ago
Simplification: When americans and europeans buy chinese products then china has dollars/euro and we have physical goods. Dollars/euros can only be used to invest into usa/european companies or to buy usa/european products.
- pzone 9y ago
  On top of that: Chinese financial markets are strictly controlled and the rates of return on safe investments like bank deposits are artificially kept down. Chinese citizens have very few trustworthy investment options outside of housing or sole-proprietor entrepreneurship, and the latter is only feasible for the politically connected.
  - monocasa 9y ago
    Are non politically connected Chinese citizens sitting on any money to invest?
cangencer 9y ago
https://tradingeconomics.com/china/current-account https://tradingeconomics.com/china/current-account
r00fus 9y ago
As I understand it, China doesn't allow speculation in anything other than real-estate and Chinese can't buy property in China (it's more of a grant from the state). So there's a lot of money that can't be invested locally or in financial vehicles (ie, 401k).
- seanmcdirmid 9y ago
  There is the Chinese stock market, but it’s lost most of its credibility as being heavily vested in insider trading.