China overseas property investment plunges on curbs

China overseas property investment plunges on curbs

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Foreign property investment by Chinese companies plunged by 84% last month, as Beijing's capital controls choked off the flow of foreign acquisitions. According to the Financial Times, in an effort to curb capital outflows and ease downward pressure on the renminbi, Chinese regulators have in recent months imposed a series of restrictions on outbound dealmaking. The curbs came after outbound investment in non-financial assets surged by 44% in 2016 to a record $170bn.  The restrictions have had an effect. Overall non-financial outbound investment fell 36% in January from a year earlier to Rmb53bn ($7.8bn), the commerce ministry said on Thursday, following a 39% drop in December. The commerce ministry did not reveal actual figures for January, but the sharp slump in foreign real estate investment comes after an overall 53% surge last year to a record $33bn