CHINESE firms invested US$33 billion in overseas properties in 2016, marking a 53 percent rise from the previous year, property services and investment management firm Jones Lang Lasalle (JLL) said Tuesday.
The strong rise in overseas property investment has alarmed Chinese authorities and they have stepped up measures to stem capital outflows in the face of a weakening currency.
The State Administration of Foreign Exchange has begun vetting transfers abroad worth US$5 million or more and is increasing scrutiny of major outbound deals — even those with prior approval, sources with knowledge of the new rules said in November.
JLL also said China is taking a more cautious stance to capital outflows, including introducing curbs on overseas investments of more than US$10 billion and mergers and acquisitions valued at more than US$1 billion if they are not part of a company’s core business.(SD-Agencies)