Crackdown on cap­i­tal out­flows rip­pling across the world, says Mor­gan Stan­ley

New Straits Times - - Business -

CHINA’S cru­sade against cap­i­tal out­flows and lever­age has en­snared some of the na­tion’s largest prop­erty in­vestors, in­clud­ing An­bang In­sur­ance Group Co — the owner of New York’s iconic Wal­dorf As­to­ria ho­tel.

The crackdown is rip­pling across the world and will likely spur an 84 per cent slump in Chi­nese over­seas prop­erty in­vest­ment this year and a fur­ther 18 per cent drop next year, ac­cord­ing to a re­port from Mor­gan Stan­ley.

The most vul­ner­a­ble real-es­tate mar­kets are those in the United States, the United King­dom, Hong Kong and Australia, with of­fice prop­er­ties the most ex­posed, an­a­lysts in­clud­ing econ­o­mist Robin Xing wrote.

Man­hat­tan is a par­tic­u­lar worry, with about 30 per cent of trans­ac­tions in the bor­ough that is home to Wall Street in­volv­ing Chi­nese par­ties this year.

In Australia, China is the largest for­eign real es­tate in­vestor, ac­count­ing for as much as 25 per cent of of­fice prop­erty trans­ac­tions in the last two to three years, ac­cord­ing to Mor­gan Stan­ley. Bloomberg

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