A piece in Axios discussing a report on the precipitous decline of Chinese investment in the US in 2017, and what it means:
When Chinese investment in U.S. companies plunged by 83% last year, it was the result of Beijing’s crackdown on capital. But it also reflected a reckoning for four Chinese titans who Beijing cut down to size, according to new research. […]
- But, but, but: When Ma looked at the individual investments, she saw that just four companies — what MacroPolo calls the Group of 4 — accounted for 61%, or $34 billion, of China’s entire 2016 investment.
- The four: Anbang Insurance, HNA Group, Oceanwide Holdings and Wanda Group.
- Absent those six deals, 2016 would have been just a tad higher than the three prior years, Ma writes.
Beijing noticed too: For years, Beijing has encouraged China’s companies to “go out” and invest around the world. But that’s not how the government viewed the Group of 4, which it proceeded to treat as something akin to traitors. […]
Oceanwide appears to be the exception. Just two weeks ago, it got final approval for yet another U.S. deal — a $3.8 billion takeover of Genworth Financial, an insurance company, reports Mingtiandi’s Greg Isaccson.
The article cited is “China Oceanwide Gets US Green Light for $3.8B Genworth Deal.”