In a policy update from China’s Ministry of Commerce, investment projects abroad no longer require approval unless they are in industries and countries deemed sensitive by the Chinese government
A major new policy comes into effect recently making it easier for Chinese developers investing abroad.
The update by China’s Ministry of Commerce means investment projects abroad no longer require approval from the ministry unless they are in industries and countries deemed sensitive by the Chinese government.
The news comes as New York’s iconic Waldorf Astoria hotel has been sold by Hilton Worldwide to Chinese insurance firm Anbang Insurance Group for US$1.95billion (£1.22billion), BBC News reports. However, Hilton will continue to operate the property “for the next 100 years”.
Astute developers have been watching policy changes closely to capitalise on the new guidelines.
Investments by Chinese developers have risen 17% since the National Development and Reform Commission increased the threshold last December from US$100million to US$1billion for overseas investments required to obtain approval, according to data from leading agency, JLL.
Among them is Shanghai-based Fosun Group, which has spent more than $3.7billion on foreign acquisitions since 2010, Bloomberg reports.
The news comes as China is in the midst of celebrating its second Golden Week of the year, which ends on Tuesday 7 October, when many nationals have an extended holiday, travel abroad and look at overseas property options.
During Golden Week, around 480million Chinese are expected to travel – a 13% increase from last year, the China Tourism Academy reports.
Among popular destinations this year for middle-class Chinese are expected to be South Korea, Thailand and Japan, boosted by a 30% fall in the cost of travel caused by yen depreciation, the Financial Times suggests.
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