Prior to the summer the big worry of wealthy Chinese was the fear that the government would probe their holdings, but now they worry about the authorities undercutting the value of their money with more devaluations or letting inflation run rampant.
|New York’s Waldorf-Astoria Hotel|
The paper reports that over the past couple of years, Chinese investors have acquired a strip mall near Long Beach, Calif., a Marriott hotel near Los Angeles International Airport and a waterfront office building on New York’s Staten Island, helped fund at least two big condo projects in Westchester County and purchased large swaths of property in the Queens, N.Y., neighborhood of Elmhurst.
Wealthy individual investors have long ignored Beijing’s rules limiting the amount of money allowed to exit the country by sending capital to the US. through family and friends, wealth advisers and private bankers say.
And on Monday it was reported that China’s foreign-exchange reserves in November fell to their lowest point in two year, fueling concerns about Beijing’s ability to stem capital outflows.
In an effort to stem the tide of cash flowing out of the county, Beijing tightened control over foreign-exchange transactions in September. Yet, this could lead to the opposite effect and force the ultra wealthy to pull even more money out of China, Katie Kao, a New York real-estate broker, told WSJ.
“They want to move faster and make more investments in the US,” said Kao, who is also a founding president of the Asian Real Estate Association of America’s New York east chapter.
As for getting a total on how much U.S. commercial real estate the Chinese actually own. That’s made difficult because many make the transactions through private companies or through a local partner.