First the Russians, Now the Chinese
Chinese business interests scour the earth for places to invest their money. It's a growing pattern that began with the ascendancy of the Chinese economy.
Are these prowling Chinese acting as prudent stewards of their money, or looking to get as much as they can out of China. A little of both?
Diversification of assets and where those assets are located can be a prudent measure for any investor. And the fact is, China's economy has hit what might be euphemistically called a "rough patch." At least that's what most Wall Street concerns keep calling it. The opposing view, gaining more adherents these days, uses terms like "collapse" and "disaster." Either way, reason enough for a prudent investor to diversify.
Of course, in the case of Chinese businessmen, it's beyond prudent. It's more a matter of survival. How many times have we seen a Chinese business mogul arrested for "corruption"? What could the Chinese government possibly mean by accusing them of corruption? Isn't a communist government among the most corrupt institutions? The fact is, the government uses "corruption" against those it wants or needs to control or, not infrequently, eliminate. And those arrested can be and have been subjected to execution. Don't cross that communist government if you know what's good for you.
While the pattern of "diversification" began as the Chinese economy grew, it's now a much more urgent matter. After decades of growth which brought with it capital inflows from the rest of the world, the trend has now reversed. The slowing Chinese economy no longer attracts capital. Capital has been fleeing at increasing rates.
Here in New York, we've lived through the Russian oligarchs buying up high-end real estate, opening clubs, eventually buying sports teams (the New York Nets, for example). I suppose we'll now see more Chinese owners and landlords, Chinese-run night spots, and maybe one or two sports teams run by Chinese business people. Not the ones who've been here for ages, but those oligarchs who want to keep one toe outside their communist homeland.
HONG KONG—A consortium of Chinese firms is investing $400 million for a minority stake in the owner of the Manchester City FC soccer franchise, as Chinese buyers scour the globe for entertainment assets.This pattern follows that of Russian oligarchs who began buying up what seemed like anything that moved after they grabbed control of the wealth of Russia and other countries of the former Soviet Union after its collapse in 1990. Wasting no time, these newly rich moguls, who derived their money from their political connections, saw early on that keeping everything at home would subject their fabulous wealth to the whims of an authoritarian government, one they knew too well, one that enabled them to take and control billions.
Are these prowling Chinese acting as prudent stewards of their money, or looking to get as much as they can out of China. A little of both?
Diversification of assets and where those assets are located can be a prudent measure for any investor. And the fact is, China's economy has hit what might be euphemistically called a "rough patch." At least that's what most Wall Street concerns keep calling it. The opposing view, gaining more adherents these days, uses terms like "collapse" and "disaster." Either way, reason enough for a prudent investor to diversify.
Of course, in the case of Chinese businessmen, it's beyond prudent. It's more a matter of survival. How many times have we seen a Chinese business mogul arrested for "corruption"? What could the Chinese government possibly mean by accusing them of corruption? Isn't a communist government among the most corrupt institutions? The fact is, the government uses "corruption" against those it wants or needs to control or, not infrequently, eliminate. And those arrested can be and have been subjected to execution. Don't cross that communist government if you know what's good for you.
While the pattern of "diversification" began as the Chinese economy grew, it's now a much more urgent matter. After decades of growth which brought with it capital inflows from the rest of the world, the trend has now reversed. The slowing Chinese economy no longer attracts capital. Capital has been fleeing at increasing rates.
Here in New York, we've lived through the Russian oligarchs buying up high-end real estate, opening clubs, eventually buying sports teams (the New York Nets, for example). I suppose we'll now see more Chinese owners and landlords, Chinese-run night spots, and maybe one or two sports teams run by Chinese business people. Not the ones who've been here for ages, but those oligarchs who want to keep one toe outside their communist homeland.
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