At the end of 2016 a sharp decline in outbound investments by China became clear as financial restrictions kicked in. Business analyst Shaun Rein expects the curtailing measures to last for at least six months into 2017, he tells the South China Morning Post.
The South China Morning Post:
Shaun Rein, managing director of China Market Research Group, said he expected outbound investment from China into the United States to drop sharply in the first three to six months of 2017.
“First, the capital controls are very serious. Right now Chinese companies are hesitant to make an acquisition overseas because they’re worried that they won’t be able to get the approval to convert for foreign exchange. That situation should get better in general as fears of a currency collapse are alleviated,” he said.
Fears that President Donald Trump may implement trade policies that target China will also weigh on investment, Rein said.
“Chinese companies and Chinese tourists both are concerned that they won’t feel welcome in the United States any more. They’re scared that Trump will target them and target China,” he said. That, in turn, would boost investment into other markets like Europe and Australia.
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