Official website, the American Real Estate Business Association, shows that 86% of real estate projects in the United States are overseas. In addition, 62% of the properties are located outside Chinese mainland and in Hong Kong, Macao and Taiwan. As we all know, real estate is one of the fastest growing industries in the world, and it is also one of the most popular industries. As for China, the property market has been in a downturn, and a large amount of just-needed and speculative funds are still being invested, so a large amount of funds will flood into China.
Sources of funds for overseas investment in China real estate
The first is overseas direct investment. Since 20 19, the scale of foreign capital inflow in China has been increasing, reaching10.6 trillion US dollars, up 16% year-on-year. Since 20 19, it has increased by 50%, which has exceeded the level in 2008. Followed by QFII. Judging from the quota of QFII in 20 19, the cumulative investment amount of QFII has reached 2097738+0 billion US dollars. It can be seen that the actual investment quota obtained from QFII institutions in the first quarter was also 8.6 billion US dollars. Qualified investors include foreign government-invested enterprises, international financial institutions and their branches, international organizations and other organizations and individuals with special status; The main investment methods are financial derivatives such as stocks, bonds and futures; Overseas financial institutions, enterprises and other investors set up securities investment fund management companies and insurance companies with domestic funds as the target in China.
Why are foreign investors so sensitive to housing prices recently? ?
In fact, the outbreak of the epidemic did not change the trend of buying China real estate at the bottom, nor did it bankrupt developers. There are many reasons why foreign capital is so sensitive to the real estate market. First of all, in the first half of 2020, foreign investors are optimistic about China real estate, because this is the fastest stage of China's economic recovery and has the greatest potential. Because there is no obvious inflationary pressure in China, foreign investors see business opportunities.
Does the property market need investment? ?
In fact, foreign investors can bargain for China in various ways, such as buying real estate directly or investing dollars. This requires attention to two risks. One is that the depreciation of the US dollar will have a negative impact on the China property market, which is not conducive to domestic housing prices. The other is that foreign capital may purchase by rent in some cities, which is also a disguised real estate speculation to some extent. If the house is valuable, the money will enter the market, and the house price may fall. Money will disappear, so be careful when investing in real estate.