What’s next for China?

Chinese investors will continue hunting trophy assets throughout the world’s top cities.

What’s next for China?With a slip in China’s formerly relentless supply pipeline momentum, North America and other Asia Pacific nations are picking up the pace. However, even with a crackdown on outbound capital, Chinese investors will continue hunting trophy assets throughout the world’s top cities. Image Credit: Free Spirit SpheresThere are a lot of questions surround the role of capital coming out of mainland China in 2017.While the Chinese government recently announced significantly tighter measures on outbound capital in mid-December for “non-core” business activities, interest from mainland Chinese investors is not expected to grind to a halt.Chinese capital continues to look for trophy assets in preeminent global markets like London, New York, Paris, Hong Kong, Singapore, Tokyo and Sydney. Since 2015, investors based in China have branched out into portfolio hotel real estate plays that have extended to large hotel real estate portfolios.Investment prospects remain favourable for Chinese investors. With the potential weakening of the renminbi, transactions in the U.S. and Europe, with a 7% return, remain attractive.Even at low leverage levels, Chinese investors are able to realise returns of 15%, which exceed those seen at many investments at home.That said, due to tighter capital controls, a number of transactions pursued by Chinese buyers will go on hold, especially those over $1 billion.