The flow of outbound investment from China to the rest of the world continues to soar in 2015. The United States remains a key market for the Chinese companies with record level transactions.
Chinese firms invested $6.4 billion in the first six months of 2015 across the United States, according to Rhodium Group, a research company. This foreign direct investment (FDI) in the United States by China was the highest half-year figure on record.
Out of the 88 transactions completed, 53 were acquisitions and the rest were greenfield projects, where companies start building their operations from scratch. California was the most popular state, attracting almost half of the funds during that period.
The real estate and hospitality industries are the favorites with 20 deals, accounting for 65 percent of the total sum. The largest transaction was Anbang Insurance’s $1.95 billion acquisition of the New York Waldorf Astoria hotel, which it completed in February 2015.
Chinese investors have been riding the U.S. commercial real estate wave in recent years, motivated by the shift in the Chinese regime’s policy to promote outbound investments, according to Deloitte. With rising economic problems at home, Chinese investors prefer to invest in the U.S. real estate market.
