The Chairman of China’s largest property developer Vanke, Wang Shi, says the company needs to shift 15 to 20 per cent of its total investment abroad to diversify its risk from the property bubble in China.
Mr Wang, says there is a property bubble in China, but it’s not clear whether it will actually burst. China’s economy is slowing but the process of urbanisation is still progressing and there are still opportunities, he said.
Mr Wang also warned of the risk of loose monetary policy as central banks around the world indulge in money printing and cutting interest rates. Wang says Vanke needs to avoid risky investments in third and fourth tier cities in China and should allocate between 15 and 20 per cent of their money to invest in overseas projects.