In the past, Chinese companies scrambled to snap up luxury hotels, office buildings and other commercial real estate in the United States. Now, the situation has reversed, and they have begun to sell US commercial real estate, mainly because Chinese regulators have made it more difficult for companies to transfer money overseas and U.S.-China relations have deteriorated.

(Reuters)

[Compiled by Lu Yongshan/Comprehensive Report] According to the Wall Street Journal, in the past, Chinese companies scrambled to buy luxury hotels, office buildings and other commercial real estate in the United States. Now the situation has reversed. They have begun to sell US commercial real estate, mainly because Chinese regulators have increased corporate interest Difficulty moving money overseas, and deteriorating U.S.-China relations.

According to MSCI Real Assets data, since the beginning of 2019, Chinese companies have sold a net US$23.6 billion (NT$742 billion) of U.S. commercial real estate; by comparison, between 2013 and 2018, Chinese companies have net bought about 52 billion USD US commercial real estate.

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Chinese buyers have been snapping up America's old office buildings, development sites and hotels, especially in Manhattan, New York, where they have been the focus of the media for their lavish spending.

For example, Anbang Insurance spent $1.95 billion to acquire the Waldorf Astoria in New York in 2015, the highest purchase price in the history of an independent hotel.

But Joel Rothstein, head of Asian real estate at Greenberg Taurig law firm, said Chinese investment in U.S. real estate began to decline four years ago, when Chinese regulators began taking steps to make it harder for companies to move money overseas, and some Active buyers are facing financial difficulties, and deteriorating U.S.-China relations have also led to a cooling of Chinese investment.

China's HNA Group bought Manhattan's 245 Park Avenue office building for $2.21 billion in 2017, but the company has been in financial trouble since 2018 and was ordered by Chinese regulators to sell overseas assets to repay debts. SL Green Realty took over.

Chinese real estate developer China Oceanwide Holdings Group (COHG) has also pledged some U.S. commercial department chattels to creditors, while Dajia Insurance Group has attempted to sell off several billion-dollar hotels, including the Essex House near Manhattan’s Central Park.

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