The Chinese super-rich are about to flood the US real-estate market

Business Insider ^ | 08/30/2015 | Lucinda Shen

[SeekAndFind]

After yet another drop in the Shanghai stock market and Hang Seng index on August 6, Daniel Chang heard his cell phone ping.

The real-estate agent was on a business trip in Shanghai, and he was mid-bite during a dinner when he saw his phone light up from a message on his app, WeChat.

It was a Chinese client concerned over a $6 million property she was about to buy in New York City. She was visiting New York at the time.

"I don't know if I can do this," she told him over voicemail. "I might have to back out."

She wanted some time to reconsider, she said, and maybe recoup her losses on the Chinese stock. She was considering dropping the $600,000 she had already put down on the cooperative — she had already lost as much on the stock market.

Then, over the course of a week, the Shanghai Composite had a brief and unsteady rise, while the yuan devalued by 3.2%. Chang's client surveyed the apartment one more time.

She closed the deal.

Chang's client is one of the group of wealthy Chinese caught in between a rock and a hard place: Leave their assets in China to potentially weather additional market volatility and yuan devaluations — or put it in real estate that is now more expensive than just a few weeks earlier.

"Lots of my clients have been hit heavily by the equity market," Chang, who was once a vice president at HSBC's private bank, told Business Insider through a series of interviews. "But that only makes them more determined to diversify out of China."

The chaos of the past few weeks is likely to lead to an acceleration in the rate of real-estate purchases by wealthy Chinese buyers in the US and elsewhere.

[bert]

the hate thought was not directed to you personally, but to those that ooze anti Chinese sentiment.

[Grampa Dave]

In 4 decades of living California, we have had wonderful Asian neighbors and made friends with some along the way.

Their children have been discriminated against, for decades when they try to get into the UC university system for being too smart and willing to work for their grades.

[riverdawg]

As long as we buy more goods from the Chinese than they buy from us, the “excess” money they receive has to go somewhere; U.S. Treasury bonds, U.S. real estate, or other types of U.S. assets. We went through the same cycle with the Japanese in the mid-to-late 1980s, when there was much hand-wringing over Japanese purchases of Pebble Beach and Rockafeller Center.

[bert]

there are chicoms and chicaps

generally, but not etched in granite, the former are old and the latter young

i would categorize a chicomcap as a transitional state where a communist saw the failure of russia and is chosing a different path

the largest initial public offering in the history of the new york stock exchange is Alibaba a China company born and bred. it is a world wide on line Thomas Register. Chicaps are far far more capable than many here give them credit for

[Cringing Negativism Network]

I think it is high time to return the focus on America.

We have sold out American businesses now for over an entire generation. To countries who do not return our good treatment.

Bring back American businesses. To America.

[bert]

American business doesn’t want to be isolated and provincial.

the world is our domain

[caww]

Not to mention the largest immigration to our nation are Asian and Indians not Mexican.

[Cringing Negativism Network]

I believe increasingly, you will find you are wrong.

American business had better start paying attention to loyalty to their own country.

Soon. Either that or China and other countries, need to open to American immigrants. I don’t expect that to happen, so we need to return the focus to growing our own businesses right here in America.

What is happening now is currently, completely unacceptable.

China now leads America is exports.

On what grounds, does China claim they can exclude Americans?

[Chickensoup]

they already are.

[ckilmer]

In my neighborhood near the CIA headquarters in the Virginia suburbs of Washington DC almost all property purchases are being done by Chinese —either US citizens or non citizens.

It looks like in another 10 years this area will go completely Chinese. The transformation is fairly rapid.

[SeekAndFind]

Go to the big cities of the USA — San Francisco, Los Angeles, San Diego, Seattle, Boston, New York, that’s where all the action is.

[Ethan Clive Osgoode]

Their children have been discriminated against, for decades when they try to get into the UC university system for being too smart and willing to work for their grades.

That's bullshit.

[no-s]

Are you sure it's BS? I've heard the UCs are on the record for trying to keep Chinese-descent students out in the past because the student population chosen by merit from non-white racial groups would wind up almost all Chinese-descent instead of the desired ethnically diverse aka mostly black and latino. They seem to effectively consider any smart, non-black and non-latino student as just another form of Caucasian.

I do know quite a few smart students who went to Berkeley claiming some patently absurd but protected disability in order to end-run the quotas which are effectively racial in all but name...but as they say, the plural of anecdote is not data.

[Grampa Dave]

Thanks posting the reality of the UC system. Over the decades we have seen and heard of Asia students with over 4 point grades being turned down.

Now with the push to get out of state students in the UC system to pay for the outrageous tuition charges, we are seeing and hearing about middle class white students with perfect grades being turned down as well as Asia students.

Supposedly now, there are tests taken by juniors in high school, uses test scores to determine/guarantee admission to a UC university, not of their choice. The only problem this year was failure of the testing system to accurately score tests for some students in some areas.

Your reality: “Are you sure it’s BS? I’ve heard the UCs are on the record for trying to keep Chinese-descent students out in the past because the student population chosen by merit from non-white racial groups would wind up almost all Chinese-descent instead of the desired ethnically diverse aka mostly black and latino. They seem to effectively consider any smart, non-black and non-latino student as just another form of Caucasian.

I do know quite a few smart students who went to Berkeley claiming some patently absurd but protected disability in order to end-run the quotas which are effectively racial in all but name...but as they say, the plural of anecdote is not data.”