wolfstreet.com / by Wolf Richter / November 27, 2016
Chinese companies, consortia, and investment funds representing the wealthiest individuals have been splurging, with the encouragement of their government, on acquisitions and investments overseas. But now the government, which has long been trying to crack down on smaller forms of capital flight, is getting nervous about these deals. The yuan is diving, foreign exchange reserves are dwindling, the debt-burdened economy is facing breath-taking risks, and it’s time to crack down on the big league of capital flight.
So far this year, Chinese buyers have announced $213 billion of acquisitions in other countries. The biggest of them is the $43-billion acquisition of Swiss-based Syngenta by China National Chemical Corp.
Anbang Insurance Group rose from obscurity to make a slew of real estate and hotel deals in the US and Canada, including the $6.5 billion acquisition of Strategic Hotels & Resorts in the US.
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