The easing of the conditions of the Chinese market, and the government's policy to encourage overseas investment of Chinese enterprises, has resulted in more than $ US7.8 billion global transaction in the first four months of 2015 (excluding housing residential), with Australia a primary recipient, according to research by Knight Frank.
In the latest report, China to the outside world of real estate and investment in Australia, the total value of foreign investments in China increased from $ US600 million in 2009 to $ US16.9 billion in 2014, 10 cent higher than 2013 and 205 percent increase from 2012.
The action focuses on commercial property, where four of the top 10 Chinese insurance companies have invested abroad so far, despite the remaining six are considering overseas expansion. Sunshine Insurance Group is the only one to invest in Australia, buying the Sheraton on the Park Hotel in Sydney for a record $ 463 million through JLL.
Dominic Knight Frank Ong, senior director of Asian markets, Capital Markets, said he expects 2015 will be another record year for foreign investment in China, both internationally and in Australia, with the expectation of more than US $ 20 billion value of investments to transact globally. "So far most foreign investment in China has focused on gateway cities of Australia, the US and the UK," Ong said.
"What started first as sovereign funds to conduct exploration investments has proliferated on shopping sprees by Chinese developers, banks, Ultra High Net Worth Individuals (HNWIs very) and institutional investors such as insurance companies. In 2020 The authorities estimate that the insurance industry of China will build one RMB20 billion more in premiums, tripling the size of the current group. "