The Chinese pulled 84% of their overseas property investments globally in the first half of 2017 after the government began officially frowning on a "negative list" of foreign investments that were attracting Chinese cash, according to Morgan Stanley.
The Chinese were 25% of buyers of central London commercial property in 2016, a recent note to clients from Morgan Stanley's research team said. [...]
"Over half the investment in the City over the past year has come from Asian investors," Morgan Stanley said, and only 15% comes from the UK. ("The City" refers only to London's financial district.)
In total, Chinese investment in foreign property globally was estimated at $10.6 billion in 2016. Morgan Stanley said it has dropped to $1.7 billion this year, a decline of 84%, and expects it to stay low next year. [...]
In the last few weeks, the China Banking Regulatory Commission began cutting off funding for foreign property investments.
Instead, the government wants investors to pour money into projects associated with its One Belt, One Road project to link China with the West via land. It called investments in property, hotels, cinema, media, and sports clubs “irrational," the Morgan Stanley team reported.
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