The annual confidential survey conducted by the Financial Times on Chinese families' foreign investments found that, despite strict capital control policies, an increasing number of investors intend to increase their offshore asset holdings in the next two years, with the main objective shifting from profit maximization to risk hedging.
Real estate will continue to be the most popular investment product among overseas investors. Additionally, the survey found that more and more investors are adopting diversified forms of overseas investment, not limited to real estate alone; more experienced investors are beginning to seek greater returns by investing in overseas securities markets.
The increasingly stringent capital control system within the country has not dampened the strong willingness of the public to invest overseas. The research results of the Financial Times indicate that, despite continuous tightening of policies over the past year, 56.8% of investors expressed their intention to invest overseas.
The survey results show that among the sample surveyed, 82.4% of investors have invested more than 10% of their total assets in overseas markets, and the enthusiasm for overseas investment will continue to sweep the globe.
The Purpose of Overseas Investment — Profit? Diversifying Risk?
Investing abroad serves as a (risk) hedge against the depreciation of the renminbi: 47.3% of respondents believe that the renminbi has depreciated against the US dollar by 8% over the past two years. Due to significant monetary overissue, the valuation of the renminbi remains artificially high, resulting in substantial depreciation pressure. Thus, it is evident that the primary reason for choosing overseas investment is the widespread need among investors to diversify their investments to spread risk.
"A House = A Home" Overseas Property for Settling Down
For Chinese travelers and domestic investors, real estate remains king. Residential properties have once again become the preferred choice for Chinese overseas investors, with 71.6% of respondents indicating that they own residential properties abroad.
In recent years, the number of Chinese buyers seeking overseas properties for personal use has been increasing. 58.5% of respondents stated that the primary reason for purchasing property abroad is to provide a residence for their family or children studying overseas. Additionally, 43.4% of respondents indicated that their purchase of overseas housing was solely for investment purposes.