A couple of recent developments out of China shows a big shift is underway in its capital outflows. First, it was the great global realty clamp:
The Chinese government has moved to halt “irrational” overseas investments by restricting purchases of real estate and entertainment assets, a decision which could dent demand for Australian assets.
The move, designed to curb capital outflows and lessen downward pressure on the Chinese currency, also compels mainland companies to align themselves more closely with Beijing’s foreign policy objectives.