A data supported by the HomeUnion Investment shows that the Chinese ranks higher than the Canadians when it comes to the top offshore buyers of properties in the U.S. An analysts revealed that the Chinese will continue to rise among the rank of foreign buyers because of the new program that will be released which is led by Beijing. This program will make it possible for rich Chinese citizens to invest more in other countries.
It has been a known fact that there is a yearly limit for Chinese citizens when it comes to exchanging their currency yuan to other foreign currencies. The annual limit which is set at $50,000 has not been a hindrance ever since when it comes to investing big since there are other ways to go around the set rules. With the help of unofficial channels, wealthy Chinese are able to invest in the real estate in other countries such as Australia, Europe and the United States.
There are unofficial methods wherein big amount of money is leaving out of Beijing and into foreign lands. Despite these methods, they are still developing a new method which is going to be released before the year ends. The pilot scheme is referred to as QDII2 or Qualified Domestic Individual Investor. This new scheme will give individuals included in the six cities together with Shanghai to put their money in offshore assets and invests on real estate, bonds and stocks. Meaning, the $50,000 limit which is imposed on a law released in 2007 which limits the amount of yuan that can be exchanged to foreign currencies is not applicable on the new QDII2 scheme.
One of the analysts in China International Capital Corp., a Chinese broker firm, voiced out the opinion that the new scheme will create an increase on the sales of real estate rather than on the stock market. The very reason is that there is already established methods when it comes to buying equities in other countries but Chinese inventors would love to get their hands on more hard assets. When it comes to real estate buying, it has been predicted that Chinese investors will target countries such as Australia and the United States.