Foreign property investments by Chinese companies have come to a complete halt, with a drop of 84% in January 2017, as China capital controllers look to re-establish the flow of foreign buys.
Chinese regulators have imposed a series of restrictions on outbound property investments in the past six months, in order to control capital outflow and release some pressure on the Chinese currency, renminbi.
The restrictions come after a significant rise of 44% to $170 billion outbound investments was reported in 2016.
The resulting effect of the restrictions mean that non-financial outbound investments fell by 36% in January 2017.
According to data reported by JLL, the drop in foreign property investments in January comes after a year where there was a record surge of $33 billion, although the actual figures were not release by the Chinese commerce ministry.
Chinese government agencies have confirmed their intentions to apply tighter restrictions to prevent ‘irrational’ outbound investments. Such deals include real estate, hotels and leisure developments.
It was also reported last month that the Chinese F.A have introduced new rules to reduce the number of foreign football players that Chinese teams are allowed to acquire.
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