A wall of Chinese money is heading for global real estate as local investors look for alternatives to the country’s crashing stock markets.
Chinese buyers have already spent billions in the U.S., UK and Australia, causing property prices to rise — and experts say much more cash is on its way.
The latest triggers: Chinese stocks have crashed 40% since June, wiping away trillions of dollars in market value; and Beijing surprised investors by allowing the yuan — or renminbi — to fall sharply last month.
Chinese are starting to “think money in the bank is not safe — it won’t gain any value if the renminbi is still devaluing,” said David Ji of Knight Frank, an international real estate agency. “So people will look to real estate as a more solid investment channel.”
(CNN Money by Sophia Yan)