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Chinese property investment firms pulling the plug on UK


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This is an interesting development.

It seems China is having a bit if a crackdown at the moment, and as well as attacking Entrepreneurs and "Sissy Boys"

https://www.theguardian.com/business/2021/aug/27/chinese-crackdown-on-tech-ipos-could-lead-to-us-share-delistings-experts-warn

https://www.theguardian.com/commentisfree/2021/sep/05/super-rich-sissy-boys-celebs-all-targets-in-xis-bid-to-end-cultural-difference

they are also forcing property investment firms to repatriate  cash.

https://www.telegraph.co.uk/business/2021/09/05/chinese-property-developer-abandons-uk/

This could gave some interesting effects on UK property prices.

But what is China's agenda here? They are rumoured to be slowing economically, do they need the cash? Is it a plan to devalue Western currencies, even though China has liked a weaker Yuan to maintain exports and employment?

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8 minutes ago, Mikhail Liebenstein said:

This is an interesting development.

It seems China is having a bit if a crackdown at the moment, and as well as attacking Entrepreneurs and "Sissy Boys"

https://www.theguardian.com/business/2021/aug/27/chinese-crackdown-on-tech-ipos-could-lead-to-us-share-delistings-experts-warn

https://www.theguardian.com/commentisfree/2021/sep/05/super-rich-sissy-boys-celebs-all-targets-in-xis-bid-to-end-cultural-difference

they are also forcing property investment firms to repatriate  cash.

https://www.telegraph.co.uk/business/2021/09/05/chinese-property-developer-abandons-uk/

This could gave some interesting effects on UK property prices.

But what is China's agenda here? They are rumoured to be slowing economically, do they need the cash? Is it a plan to devalue Western currencies, even though China has liked a weaker Yuan to maintain exports and employment?

As far as I know they are trying to avoid an epic bubble and crash; they have identified lots of run away lending and speculation across the Chinese economy

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4 minutes ago, Si1 said:

As far as I know they are trying to avoid an epic bubble and crash; they have identified lots of run away lending and speculation across the Chinese economy

So no more boom and bust?

I had heard that idea mentioned before, and in China that goal does tie with the CCPs desire for social control. Certainly if you look at the Sissy Boy article they don't like entrepreneurs and entertainers stealing the limelight from the party.

Could be a watch this space get the popcorn out over the next decade.

It will be interesting to see how this plays out in the UK and the rest of the west, but also in place like Africa where China has been buying influence.

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Just now, Mikhail Liebenstein said:

So no more boom and bust?

I had heard that idea mentioned before, and in China that goal does tie with the CCPs desire for social control. Certainly if you look at the Sissy Boy article they don't like entrepreneurs and entertainers stealing the limelight from the party.

Could be a watch this space get the popcorn out over the next decade.

It will be interesting to see how this plays out in the UK and the rest of the west, but also in place like Africa where China has been buying influence.

It might be good for Africa as they'll divert capital away from speculation and towards outward investment in, y'know, useful stuff

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5 minutes ago, Roman Roady said:

Well our masters and betters have seen fit to allow the UK housing stock be used as a commodity to be traded on international markets, this is where we see UK property price come down like a burnt stick.

I'm secretly hoping it hits commercial harder than residential, normally this is the case. The reason for that is that if we can increase business viability by lowering rents we might get the wheels back on the economy. Commercial can easily fall 80%.

Residential is a bit tougher, because mostly people will just sit on loses and secondly I don't think we want another banking crisis - but a 20-25% fall would be containable.

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Quote

UK estate agents have meanwhile been warned conducting business with China is likely to become harder due to a new data protection law.

Looks like a Chinese clone of GDPR. All helpful pressures on prices though :)

 

Edited by Huggy
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Interestingly China in 2019 was worried about capital flight from China:

https://www.bloomberg.com/news/articles/2019-10-11/china-hidden-capital-flight-at-a-record-in-2019-iif-says

I do know the demographics stink, may be they are having to deal with the mother of all social care bills?

That said, since C19 they have done well with foreign investment:

https://www.bloomberg.com/news/articles/2021-04-06/china-s-epic-battle-with-capital-flows-is-more-intense-than-ever

Edited by Mikhail Liebenstein
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6 minutes ago, Mikhail Liebenstein said:

I'm secretly hoping it hits commercial harder than residential, normally this is the case. The reason for that is that if we can increase business viability by lowering rents we might get the wheels back on the economy. Commercial can easily fall 80%.

Residential is a bit tougher, because mostly people will just sit on loses and secondly I don't think we want another banking crisis - but a 20-25% fall would be containable.

London needs 80% on residential too. Maybe 90% as a punishment.

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32 minutes ago, Huggy said:

Looks like a Chinese clone of GDPR. All helpful pressures on prices though :)

That'll make doing business interesting for the US tech giants, but then China has most of its own such firms now.

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4 hours ago, Mikhail Liebenstein said:

I'm secretly hoping it hits commercial harder than residential, normally this is the case. The reason for that is that if we can increase business viability by lowering rents we might get the wheels back on the economy. Commercial can easily fall 80%.

 

Not a secret now!

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4 hours ago, Huggy said:

London needs 80% on residential too. Maybe 90% as a punishment.

Just like the old days.  There was a thread/post somewhere about buying up properties after the crash with coins found behind the sofa.

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It's control. Plain & simple. It always is with CCP.

 

The Chinese government can't control the UK housing market & so fear individuals or institutions having too much power or the ability to act independently of the Chinese government. 

 

Won't impact house prices - there will always be someone else with money ready to step in

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