Chinese insurers lead 50% increase in offshore investment, focus on property

SHANGHAI – China’s outbound investment has climbed 50% to US$15.6 billion year-to-date, supported by rising interest from insurers in increasing their real estate allocation. “We are seeing a structural shift, with Chinese insurance companies globalising their investment portfolios,” says David Green, Global Research Director at Jones Lang LaSalle (JLL).

Continued loosening of outbound investment regulations since 2012 is driving China’s insurance groups to actively seek real estate assets in gateway cities around the world, he says.

These funds are keen to take advantage of the assets class’s income-producing characteristics, its relatively low risk, and the benefits of a diversified portfolio.

Chinese insurance groups could allocate up to US$240 billion to direct real estate outside of China, based on current metrics, over a long-term period, according to JLL forecasts. www.jll.com (ATI).