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News Link • China

Belt and Road investments versus Developed world investments

•, brian wang

Private companies in China tend to invest in the USA, UK, Switzerland and Australia. They are acquiring hotels, entertainment firms and real estate. There is also some M and A activity for buying profitable businesses. Investments in developed countries are more profitable.

Average 20-year returns (1995 to 2015) in the commercial real estate slightly outperform the S&P 500 Index, running at around 9.5%. Residential and diversified real estate investments do a bit better, averaging 10.6%. Real estate investment trusts (REITS) perform best, with an average annual return of 11.8%. The S&P 500 Index's average annual return over the past 20 years was approximately 8.6%.

BRI investment was $138 billion and construction was $202 billion. China was investing and constructing in Asia prior to the BRI projects.

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