Analyst: Why Chinese Investors Are Attracted to US REITs
Chinese investors looking to preserve their wealth are pouring money into US condos and commercial buildings, and the trend will grow, predicts Thomas Dwight Capital managing director Richard Stavros in Investors Daily.
Amid concerns over the recent collapse of Chinese stock markets, Chinese buyers have spent $28.6B on American homes since March, and more than $590B has reportedly moved out of China since last summer.
Currently, Chinese investors are responsible for a “small part of overall sales,” Stavros says, but the push isn’t likely to dwindle anytime soon.
REITs are a solid choice for wealth preservation, according to Stavros, because they "typically trade independently from stock markets that could be affected by the impending rate increases." Also, Goldman Sachs is already advising equity investors to "moderate their expectations for stocks in the coming years.” [ID]