Foreign capital is dipping its toes into China’s property sector. Is a rebound in store?
From shopping malls to warehousing and logistics companies, a wave of deals by foreign funds in China is injecting liquidity into a property sector scarred by years of struggle. Several Wanda Plazas – the sprawling mixed-use developments that were once the flagship assets of tycoon Wang Jianlin’s Dalian Wanda Group – received fresh capital injections from global asset manager PAG in June and…
Foreign funds have begun investing in China's property sector, sparking interest in a potential market rebound. Wanda Plazas, once flagship assets of Dalian Wanda Group, have received capital injections from global asset managers PAG in recent months. This follows a resurgence in property transactions within China's top cities. Despite the Evergrande crisis causing a slump in the market five years ago, foreign investors, seen as "smart money," are now optimistic about the sector's future.
James Macdonald, a property consultancy researcher, notes that while investors are not necessarily calling the market bottom, they believe valuations have adjusted sufficiently to offer favorable risk-adjusted returns. Such deals help liquidity injection into the scarred market, accelerating stabilization and recovery, according to Yan Yuejin, from E-house China Research and Development Institute.
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