The weakening peso is proving lucrative for Chinese investors considering an investment in the Philippines. The peso is likely to suffer somewhat because of weaker exports to Japan and the USA. In contrast there is the possibility that the Chinese government might invest offshore to weaken its currency somewhat. China is facing the same prospect as Japan in the 1960s to 1980s, when their ascending currency placed upward pressure on their currency. China now faces the same pressures. In response, just as the Japanese did before, we can expect the Chinese state enterprises to invest in Philippines property. For the Japanese the interest was property and mining assets in the USA and Australia. For the Chinese, I think we will see a broader spread of investments, but clearly insofar as property is concerned the Philippines is the best place. Why? Well the country is already familiar to them. There are already a lot of Chinese-owned resorts, Chinese people living in the Philippines, and thus Chinese cultural influences. For Chinese private investors too there are opportunities for business, as well as the ability to invest from a strong currency, as well as providing some security away from an uncertain political regime. You can be sure that China is not shifting from communism to capitalism, but rather the collectivist fascist model embraced by its Western counterparts. Even the Philippines is not free from this trend. We are going to see more government spending in China, more public education, insurance, etc. The Philippines, with tax receipts of just 17% of GDP, looks relatively good.
The Philippines is particularly attractive for Chinese travel & property development companies. Already several Chinese companies have formed local join ventures to buy local property. The same opportunity exists for all Chinese from Singapore, Taiwan or mainland China, since all those currencies are strong. For more info refer to the 'Buying Philippines Property' report.
The Philippines is particularly attractive for Chinese travel & property development companies. Already several Chinese companies have formed local join ventures to buy local property. The same opportunity exists for all Chinese from Singapore, Taiwan or mainland China, since all those currencies are strong. For more info refer to the 'Buying Philippines Property' report.
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Andrew Sheldon www.sheldonthinks.com
Andrew Sheldon www.sheldonthinks.com
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