S. Ramakrishna Velamuri via Caixin | A leading Indian business daily reported on March 6 that Chinese corporations had made investments of $5.2 billion in Indian early- and growth-stage companies in 2017, and the figure for the first two months of 2018 had already crossed $1 billion.
Chinese investors want to make money and insist on having good information. Data applications are appearing on demand and there is a record level of collaboration on information amongst big businessmen.
Until very recently, Chinese investors’ preferred choice was the real estate sector. Chronic new housing oversupply led many to fear an eventual burst of the real state bubble and to abandon their brick and mortar investment ambitions. Looking for fresh alternatives, many are rushing into the buying of shares in the local stock exchanges. The number of individual investment accounts grew 400% in the first quarter of this year.
A fourth wave of Chinese investors keen to explore growth opportunities is emerging, according to a recent report from the consultancy firm Knight Frank. And experts predict that the trend will grow further in the coming years, fostering greater synergies between Chinese real estate agents and overseas Chinese investors. The goals and strategies of this new investor are more diversified; with a special focus in new and secondary markets, and away from major cities such as London, New York. Countries like Spain and Portugal are able to provide additional perks, such as programmes through which investors can obtain residence permits.
The launch of the Hong Kong – Shanghai Stock Connect gives foreign investors unprecedented access to the Chinese stock market by simply opening an account in Hong Kong. While the new scheme provides undoubted opportunity, systemic flaws in China continue to cause concern.