Chinese shoppers in the U.S. can now use WeChat Pay & Alipay, China’s leading mobile payment solutions

A Chinese shopper using WeChat Pay - China Elite FocusCitcon, the integrated payment and marketing platform, announced a strategic partnership to enable brands in North America to accept WeChat Pay and Alipay.

WeChat Pay and Alipay are the most popular and convenient payment options for Chinese consumers to purchase goods and services. Adding these payment options to retail point of sale allows brands to now tap into an even larger revenue stream from Chinese consumers who are the largest spender, and fastest growing traveler segment to the North America. The platform enables brands to optimize revenue growth without the costs and hassles of establishing a business entity in China.

WeChat Pay is a fully integrated payment solution within WeChat, the world’s most popular mobile social communications service with 936 million active users and Alipay is a super lifestyle app run by Ant Financial Services Group with more than 450 million active users. Together these platforms jointly account for 90% of China’s mobile payment market share. Both super apps allow users to book a trip, hail a taxi, order food, purchase movie tickets, pay for water and electricity bills, manage investments, perform transactions on e-commerce websites and more to create a cashless society.

“China is changing fast. Mobile payment is the new frontier of commerce and China is leading this trend. By providing an integrated and easy-to-use payment solution, Citcon is creating a future that takes payment and marketing to the next level, empowering global merchants to drive business growth with millions of Chinese consumers.”said Chuck Huang, Founder and CEO of Citcon

As the first payment partner of WeChat Pay and Alipay, in addition to major credit cards such as UnionPay, MasterCard, Visa, Discover and American Express, Citcon is a one-stop shop for merchants to connect with Chinese consumers and accept payments anywhere. Citcon’s stand-alone mobile point-of-sale (mPOS), easy-to-integrate API and software products empower merchants to optimize growth both online and offline, with an easy and affordable rate compared to credit card processing. In addition to the convenient payment solutions, merchants will also be able to gain in-depth consumer behavior insights, manage business performance, run marketing campaigns, guides users to merchants stores while saving their shopping preferences for future visits and manage lifetime customer loyalty programs.

“Accepting WeChat Pay is a smart move for U.S. Retailers. That will definitely help with the category of budget-conscious Chinese travelers who choose to travel in groups. But they must keep in mind that the most affluent categories prefer to pay with their international credit cards, who show their status when traveling overseas and offer more perks in terms of miles and reward points.” commented Pierre Gervois, CEO of China Elite Focus Magazines LLC, a media group specialized in luxury travel publications for very affluent Chinese outbound travelers.

Source: Citcon / Chinese Tourists in America

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Targeting Affluent Chinese shoppers the Bloomingdale’s way: Talking to the heart of Chinese tourists planning a U.S. trip

Bloomingdale's Interviews -Shanghai Travelers Club May 2015 -7The growing purchasing power of affluent Chinese travelers is making it more important than ever for luxury brands and luxury retail brands to adopt marketing strategies to target them. With Chinese third-party mobile payment systems like Alipay and WeChat Pay beginning to set up shop in popular global tourist destinations, catering to this traveling consumer is becoming easier to do, but it’s not a brand’s only option.

Digital intelligence firm L2’s recent report “Cross-Border and Travel Retail: Connecting Digitally with China’s Shoppers” discusses ways brands can be targeting consumers online both during their journey overseas and before they set off.

“[Luxury brands] are under-serving the traveling Chinese consumer, whether it’s through their own brand site and its functionality and capability, their WeChat account, or from leveraging things like WeChat Pay and Alipay,” said Danielle Bailey, head of Asia Pacific Research at L2. “It’s a huge missed opportunity for them to not engage on these platforms that Chinese consumers are using all the time. Their phone is their number one travel accessory.”

Brands that do engage consumers digitally abroad with an omnichannel approach are using platforms like Alipay’s “Overseas Travel Channel (支付宝境外游)” to give travelers exclusive gifts, better exchange rates, or let them find deals near where they’re going, all within the app on their mobile device. WeChat’s website within an app feature gives consumers the opportunity to reserve a product online to pick up in a store and access store locators in their own language that they can hand to a taxi driver en route.
But about half of Chinese travelers are doing research on what they want to buy abroad before they leave, and luxury brands have been adopting strategies to target these consumers, according to L2.

Bloomingdale's Interviews with Chinese customers -Shanghai Travelers Club May 2015 -4In a dissent opinion, Pierre Gervois, Publisher of the STC magazine, a digital travel media in Chinese Mandarin, said “The most important for retailers is not the way Chinese shoppers are going to pay. It’s a technicality. Chinese Customers who want to make a purchase have plenty of options: Cash, credit Cards or WeChat Pay.  The really important thing to do is to convince them to choose a particular retailer”
“Too oftenly, we see U.S. retailers being obsessed by Chinese mobile payment systems when their strategy should be focused on branding their image to Chinese millennial travelers, and create an emotional connection with their future customers, based on their brand values”, Gervois added.

A good starting point is to provide an international store locator on their official online store in China, a strategy about 72 percent of brands employ. However, brands can also take it a step further by adding a Chinese-language travel retail site that let shoppers research the products, compare prices, read reviews, view maps that direct them to duty free shops, and even let them purchase the product online in advance so that they can simply pick it up at the airport if they’re in a hurry.
To help consumers find these pages, brands are paying for search term generated Baidu ads. L2 lists the efforts of beauty brands as an example—many brands pay for cosmetics-related key words, while others, like Lancôme, are taking a more travel-centric approach, targeting consumers researching phrases like “South Korean vacation.”

Some high end retailers, such as Bloomingdale’s, choose a more qualitative approach, and advertise in luxury digital travel publications about the U.S., like the STC magazine, available for mobile but also in digital inflight entertainment.

Bloomingdale's Interviews with Chinese customers -Shanghai Travelers Club May 2015 -3With a very creative advertising campaign created by China Elite Focus Magazines in New York, they organized interviews of actual Mainland Chinese customers while shopping at their Third avenue flagship store.  The story of six actual Chinese Bloomingdale’s customers has been published in the digital edition of the STC magazine: It has much more impact than buying keywords on Chinese search engines and directly talked to the heart of Chinese consumers.

While maintaining an engaging physical presence in airports and shopping malls is always important for marketing to the Chinese shopper abroad, brands that understand how to make the most of China’s digital sphere are likely going to more efficiently connect with Chinese travelers who are in the process of creating their luxury goods shopping list for their next overseas vacation.

Source: Jing Daily / Skift / Chinese Tourists Blog

Bloomingdale’s smart strategy to target affluent Chinese shoppers in New York

Bloomingdale's advertising in Shanghai Travelers Club magazine - China Elite Focus 2015We have all seen these cheezy advertising campaigns made by department stores or western brands trying to attract Chinese tourists in the last years: Be assured that affluent Chinese tourists were also smiling…  But it is going to change. Exit the low quality shopping publications targeted to Chinese tourists that ended in the hotel rooms trash bins. U.S. and European Luxury brands and high end retailers start now to advertise seriously with affluent Chinese tourists.

Although luxury sales in mainland China have still remained in slowdown mode in 2015, and Hong Kong has recorded a significant slump as well, Chinese spending remains a potent force in the global luxury industry, propping up growth rates in developed markets worldwide.
This week, Hermès reported a 22 percent increase in global sales in the sAdvertisement Tower - Gervois Hotel Rating May 2017 featuring Pierre Gervoisecond quarter, with sales in Japan leaping 33 percent—a figure attributed in large part to an influx of big-spending Chinese tourists attracted by a weaker yen and easier travel. On a global scale, Chinese travelers are spending lavishly: a recent Global Blue report found that Chinese tourist spending jumped 87.8 percent in June, while spending on leather goods in Europe grew by an even more staggering 93.7 percent. Year-to-date spending growth sits at a whopping 110 percent.
These numbers contrast sharply with the situation in mainland China and Hong Kong, one that is particularly striking in formerly triumphant Hong Kong. Last week, Burberry reported a “double-digit percentage decline” there for the three months ending in June, while sales of Swiss watches in the former British colony were down 21.2 percent in June, despite 3.3 percent growth worldwide.

Woman reading Gervois magazine in a coffeeThese numbers further support the trend that growth is following Chinese tourists abroad, and brands need to keep up with their changing location preferences for travel—engaging outbound shoppers before they leave China and when they arrive overseas. Recent stats also illustrate the ever-shifting tides of Chinese travel patterns. Whereas Japan was, just a few years ago, faced with a Chinese tourist slump (caused in no small part by Sino-Japanese political tensions), the country is seeing a wave of Chinese arrivals and spending, owing to cooling attitudes toward Hong Kong and South Korea’s currency fluctuations and MERS outbreak.
Amid these rapid and unpredictable changes, what is clear is that brands need to have plans in place to quickly jump on opportunities, and ensure they’re able to reach and influence the Chinese outbound consumer wherever he or she happens to be in the world.
“Luxury retailers like Bloomingdale’s have well understood the importance of targeting affluent Chinese tourists”, said Pierre Gervois, CEO of China Elite Focus and Publisher of the Shanghai Travelers’ Club magazine, a high end publication in Chinese language for High Net Worth Chinese global travelers. “Bloomindale’s and the Shanghai Travelers’ Club magazine have launched a very creative marketing and PR campaign this spring showing actual Chinese customers and what it feels like to shop at the iconic Bloomingdale’s store in NYC.” Gervois added. This campaign has generated a considerable attention on Chinese social media and is the first ever campaign focused on the Chinese customer and the overall shopping experience in a U.S. luxury retailer. An example to follow for the industry.

Source: Jing Daily / Chinese Tourists Blog / Chinese tourists in America

New York City expects 1 million shoppers from China by the end of 2018

Chinese shoppers at Bloomingdales NYC - Shanghai Travelers ClubNew York City hopes to reach 67 million annual visitors by 2021, and a big part of the plan is attracting big spenders from places like China and Brazil.
Of that 67 million goal, New York expects 16 million will come from international markets, and 51 million stateside. Based on city figures, 965,000 tourists came from Brazil, and 809,000 from China last year, which ranked Nos. 2 and 3 in international tourism to the city.
“China’s been growing a little faster in percentage from a rate-of-growth perspective, so China’s been a huge growth market for us,” said Christopher Heywood, spokesman for NYC & Company, the city’s official tourism bureau. “Brazil in the last few years has also been [growing], and it still will grow this year, but our big focus is on China.”
An informal survey by China Daily of major US tourist cities finds that the Chinese and Brazilians are substantially increasing their visits.
New York expects 1 million visitors from China by the end of 2018, Heywood said.
Only a few years ago, Brazil and China were not ranked in the top three international markets for New York, but have overtaken European markets such as France, Germany, and Italy.
“One thing about Brazil and Chinese is they don’t mind coming in the winter months, so for Lunar New Year, a lot of our Chinese visitors come during that period,” Heywood said. “The Brazil market, they don’t mind the novelty of being in the snow and being in the cold, so they don’t mind coming in those winter weather months, which is exactly the time of year we want to fill the gap and create more demand during the first quarter,” Heywood said.
Las Vegas is seeing a steady increase of travelers from the two countries, which along with Australia, have been major growth markets for the gambling capital, despite not having direct flights to any of the three countries.
“Our market share and growth has been very good, and our growth in Las Vegas over the last three years has been slightly higher than the growth to the US from China, so we feel very comfortable about that,” said Rafael Villanueva, senior director of international sales for the Las Vegas Convention and Visitors Authority.
“We realize that we’re not going to go out there and get gobs and millions immediately, so we want to do it correctly,” he said. “As the second-tier cities in China start opening up, that’s going to be our volume market.”

“Chinese businessmen like Vegas to close business deals with their American business partners” noted Pierre Gervois, Publisher of the Shanghai Travelers’ Club magazine. ” we have seen a trend since the beginning of 2015, where Chinese Executives came to New York City for business, and organized a two days trip to Vegas, inviting their U.S. counterparts -sometimes in private jets-, in order to close their business deal and have good time”, Gervois added.
Those are the visitors who are going to the US to experience what Villanueva called the “sampler plate”. He said “they came and visited 10 cities in the two to three weeks they were here, and now they’re coming to the US to spend a little more time in San Francisco, Los Angeles and Las Vegas”.
Las Vegas welcomed 300,000 visitors from China in 2013, up from 263,000 in 2012, and 187,000 from Brazil in 2013, up from 161,000.
The Chinese make up a much smaller portion of Miami’s visitors, but there is growth. The city doesn’t have specific data on the number of Chinese tourists, only air studies completed by the city’s airport air service consultant, and it estimates that the Miami market generated 55,000 Chinese passengers in 2014.

Source: China Daily USA / Amy He

81% of Affluent Chinese male shoppers in the U.S. receive “Disappointing” service while shopping, study founds

Asian couple in streetThe Shanghai Travelers’ Club magazine, China’s leading luxury travel magazine for High Net Worth global Chinese travelers, launches a new monthly regular section about Men’s Fashion.

“As Chinese entrepreneurs are becoming more and more international, they are more attentive to their personal style while in business meetings or in corporate events” said Pierre Gervois, Publisher and Editor-In-Chief.

The newly appointed Men’s Fashion Editor, Tyron Cutner, will be in charge of this new editorial feature.  An expert in men’s fashion, Tyron Cutner is a well known fashion adviser in New York City and will bring his expertise and style to the publication.

“I feel proud to be part of the prestigious Shanghai Travelers’ Club magazine. Every month, we’ll share with our Chinese readers the latest trends in Men’s fashion and accessories, as well as the basics that every international gentleman must have in his suitcase when traveling”, said Tyron Cutner.

Every month, starting in September 2015, the Shanghai Travelers’ Club magazine will feature a section providing fashion advice for the modern, style conscious, Chinese businessman.  Wether he’s attending a negotiation meeting in New York City, at a Charity ball in London, or attending a gala dinner in Paris.

Advertisement Banner Gervois Hotel Rating - May 2017 featuring Pierre GervoisAccording to a survey by China Elite Focus, 74% of Chinese male entrepreneurs and top executives aged 30 to 45 agree that paying attention to their personal style has a positive impact in conducting business.  And a staggering 81% think that they receive a “Disappointing” or “Very disappointing” welcome when shopping in the United States.

“It’s also important that fashion brands realize that they need to substantially improve the way they interact with affluent Chinese customers in the United States. We hope that this new editorial content will encourage U.S. retailers to implement long awaited changes in the customer service towards Chinese travelers”, Pierre Gervois added.

The Shanghai Travelers’ Club magazine is a China Elite Focus Magazines LLC publication withg offices in Hong Kong, Shanghai and New York City.

Average Chinese shopper spends $6,000 per California visit

Affluent chinese tourist - china elite focus magazinesAccording to the California Travel and Tourism Commission, Chinese tourists’ average spending of $6,000 per person during a trip to the US is the highest in the world. Wide selections of designer’s bags and shoes drive Chinese to California on shopping sprees. A 7,000-member Chinese tour group traveled to California last summer, and each member spent $10,000 on average during their one-week stay.
The biggest driver of this growth appears to have been the visa policy approved by Chinese President Xi Jinping and U.S. President Barack Obama in 2009. At the Asia-Pacific Economic Cooperation meeting in November 2014, the two leaders agreed to extend tourist visas to 10 years and student visas to five years.
Following the November agreement, U.S. consulates in China have recorded a 68 percent increase in visa issuance, indicating a spectacular increase in the plans for Chinese to visit the U.S. in the future, with most coming at least initially to California.
At the fall 2014 “Visit California Outlook Forum” attended by over 500 California tourism industry professionals at La Quinta Resort in Palm Springs, experts predicted that Chinese visitors will spend $2.2 billion in California in 2015 and 2016.
The China Daily reported that Kathryn Smits of International Tourism at the Los Angeles Tourism and Convention Board told the Forum that airline service between China and California major gateways of Los Angeles and San Francisco has increased 44 percent.
Chinese airlines have added new direct flights from Los Angeles to cities in China or plan to add flights due to the availability of Chinese-language services to assist travelers. In July, Air China will add a third daily direct flight from Los-Angeles and Beijing and China Eastern Airlines will start direct service to Hefei, in southeast China. Both airlines credit the relaxed visa policy for accelerating growth.
GERVOIS magazine Spring 2017 coverThe Beverly Hills Visitor Center commented that more than half of the premier stores in Beverly Hills now employ Mandarin Chinese-speaking salespersons. Most stores in Beverly Hills stores accept China’s Union Pay credit card. Five-star Beverly Hills hotels now feature Chinese-style breakfasts and house slippers year round. The Visitor Center also provides shopping maps and discount coupons printed in Chinese. The Shanghai Travelers’ Club magazine, China’s most prestigious luxury travel magazine has endorsed Beverly Hills as a top U.S. destination for High Net Worth Chinese. It helps.
Well-heeled Chinese tourists seem to like what they have seen on their visits to the Golden State. Southern California real estate agent Le Yuan told the China Daily that he had seen a double-digit increase in clients this January. Many Chinese clients can fly here to see the houses and neighborhood,” Le said. “Travel is just so easy.”
Source: Breitbart

Chinese shoppers are welcome in the US for the Independence Day

Bicester VillageYin Jie, a 35 y.o. Chinese tourist from Beijing, is looking at the Niuyue Mag black and blue sticker on the window of a fashion designer store in SoHo “If they have been recommended by Niuyue Mag, I know it’s a very creative brand” she says with a big smile, watching her iPad with the Spring issue of Niuyue Mag.

Chinese shoppers are expected to provide the much-needed momentum for retail sales in the US on Friday, even as most Americans celebrate their country’s 238th birthday with fireworks, cookouts and parades.
“We have received calls from several Chinese shoppers about July 4 sales,” said Jim Anderson, marketing director of the Chicago-based Fashion Outlets. “Many US retailers have already started Independence Day sales, and we expect the deals to continue through the holiday weekend..
A manager at the upscale-luxury South Coast Plaza in Costa Mesa, California, who did not want to reveal her name, said that the number of Chinese tourists, especially independent travelers, goes up during the Independence Day period.

The Fourth of July week is considered to be a boom period for retailers in New York. “Short-term four-day travel packages, especially ones with Woodbury Common on the route, have become extremely popular with Chinese tourists,” said Jasmine Xu, assistant manager of EWorld Tours, one of the largest Chinese-owned travel agencies in New York.
Woodbury Common Premium Outlets, located in Central Valley, New York, about an hour and a half outside of Manhattan, has 220 high-end stores and is owned by Premium Outlets, a subsidiary of Simon Property Group. This year, Woodbury’s sales will run until Sunday, and offer an additional 25 percent to 65 percent discount on top of their everyday savings on brands like Armani, Fendi and Burberry.
“On Monday, we had 15 Chinese tour groups at the Woodbury outlets, and on the first day of the sale, there were more than 20 tour groups from China,” said Jean Guinup, the regional vice-president for the northeast region at Simon.

“We may see even more than that, and it’s the same for all the Simon Premium Outlets on the East Coast and West Coast,” Guinup said.
“I’m sure there will be a lot of Chinese people going to Woodbury during Independence Day, based on our experience last year,” said Laurie Heller, marketing manager of Coach USA Short Line. “Many of them come especially when there are big sales, like Memorial Day or the Fourth of July.”
“I got to know about the huge sale happening there and decided to go and shop for brands like Coach, Tommy Hilfiger and Juicy Couture,” said Wang Xinji, a Chinese tourist from Shanghai, who was waiting with her boyfriend at the Port Authority Terminal in Manhattan for the shuttle bus to Woodbury Common on the first day of the sale.

Chinese shoppers become more sophisticated in California

Chinese shopper in California- China Elite FocusIn Los Angeles, many tourism officials see Chinese travelers as the wave of the future. California’s No. 1 market for overseas visitors is China, said Caroline Beteta, president and CEO of Visit California, a non-profit geared toward maintaining and developing tourism marketing programs in the state.  She said Chinese tourists spent more than $1.6 billion in 2012, and spending levels are expected to increase, with China’s growing middle class and the easier access to visas for U.S. travel.
“We’re seeing a trajectory on China that is once in a career or lifetime,” Beteta said.
And it’s that growth that many tourist attractions and venues want to capture in sales.
Beteta’s non-profit hosted a forum at the Langham Huntington hotel in Pasadena on Wednesday, where more than 460 people gathered to discuss tourism issues, including how to better cater to Chinese travelers.
The tourists are coming from large metropolitan Chinese cities like Shanghai and Beijing, as well as second-tier cities like Qingdao, Hangzhou or Chengdu.
Reports  show a growing interest from affluent Chinese nationals to invest in American real estate, business and send their children to the U.S. for study. Additionally, Chinese millionaires tend to be on the younger side. The average age of a millionaire in China is around 37, compared to 57 in the U.S.
One key factor is also how much money tourists from China spend – an average $170 a day in L.A., which compares with tourists from other locales spending an average $163 in L.A.

But how to convince affluent Chinese tourists to choose a U.S. destination versus another? Chinese travelers have their secret weapon in their iPad. Several digital travel magazines entirely in Chinese mandarin are now published for the famous Apple tablet, and have a tremendous impact on how Chinese tourists plan their trip to America. Publications like Luxury Hotels of America, Niuyue Mag, or the Shanghai Travelers’ Club, published by China Elite Focus Magazines LLC, have gained tens of thousands of new readers over the last year. According to Sam Wang, a Shanghai businessman traveling three to four times a year to the U.S. “I read Luxury Hotels of America before choosing a hotel because they have a high quality editorial content about hotels that I can’t find in regular travel websites or booking engines in China.” He also said ” I want the top hotels where American famous people go, not the hotels for tourists that are advertised by cheap travel agencies”.
Businesses are hoping to give tourists more reasons to come to their attractions by pulling out all the stops. Hotels like the Hilton are offering Chinese breakfast, with dishes that include rice porridge. And stores like Macy’s are offering a 10 percent discount that can be used on some luxury brands.
“We’ve done a number of promotions to make it very easy and appealing for the consumers to shop at Macy’s,” said Brian Chuan, director of tourism marketing and development at Macy’s. “We have the products that they want. We carry all the American designer brands that they are looking for.”
He said Chinese tourists spend the most money at Macy’s compared to any other international group. Macy’s tracks the sales by how much the tourists spend on their international credit cards. He said it’s cheaper for Chinese tourists to buy the American brands here, because in some cases it might cost three times more in China.
“We see them leaving with an extra luggage filled with things they want to bring home,” Chuan said.
Chuan also said Macy’s accepts the China UnionPay card, which is a payment card associated with network of banks in China. That makes it convenient for shoppers who don’t want to pay in all cash.

Spending from international visitors make up just 3 percent of Macy’s overall sales at its 800 stores nationwide, Chuan said. But he pointed out that at some locations, spending from international tourists could make up 20 to 50 percent of a store’s total sales, he said.
Chuan travels to China to market Macy’s to groups such as tour operators and banks. Macy’s doesn’t have any locations in China, but Chuan said people there are familiar with the brand.
Macy’s has 13 stores with visitor centers, that allows customers to check in their bags. Centers in Southern California include one in San Diego and Downtown L.A., for its close proximity to the convention center and Staples Center. At key stores, Macy’s may have Mandarin speaking staff.
It appears to be working. Just one day last week in New York, buses dropped off about 1,500 Chinese travelers at the Macy’s, he said.

Source: Chinese Tourists Blog

Wealthy Chinese invest in Commercial Real Estate

Wealthy Chinese family - Shanghai Travelers Club - CEFChinese investors, the second-biggest overseas buyers of US residential real estate, are building up portfolios of US commercial property as they look for new avenues of diversification. Chinese entities announced more than $5.89 billion in projects in January-October, nearly six times the $996 million for all of 2011 and 2012 combined, data from New York-based consultancy Rhodium Group show.
“There is a lot of upside,” said Thilo Hanemann, Rhodium’s research director. “We are at the beginning of a structural increase of Chinese investment in US commercial real estate.”

“Chinese investors have understood that U.S. retail has a great potential with the flow of high spending Chinese shoppers, and want to get a share of this huge market”, said Paul Martin, Editor in Chief of The New Chinese Tourist.
Greenland Holding Group Co completed a deal that will give the Shanghai-based developer a 70 per cent stake in Forest City Enterprises Inc’s Atlantic Yards, a 22-acre commercial and residential project in Brooklyn, New York. The deal, which is expected to require $4.8 billion worth of investment over eight years, is the largest property transaction by a Chinese company in the US.
China’s push into US property is underpinned by declining investment returns at home, a growing desire by wealthy individuals and developers to diversify their holdings overseas, and property companies looking to capitalize on offshore migration.
“Some investors want to diversify their assets, and some are looking for different growth opportunities,” said Julien Zhang, international director in Beijing for property consultancy Jones Lang Lasalle, which is advising three Chinese conglomerates on property deals. “Others want to learn how to enter mature and developed markets.”
A rebound in US real estate pricing, tight inventory in major cities, and continued low interest rates also are attracting Chinese buyers, said Gary Locke, the US ambassador to China. Locke was speaking at a forum in Beijing sponsored by the US Embassy to promote Chinese investment in US property. Chinese investment in the US has surged to $18.5 billion over the last two years, more than the combined total of the previous 11 years, Locke said.

Advertisement Tower - Gervois Hotel Rating May 2017 featuring Pierre Gervois“Chinese investors are now looking to purchase entire luxury shopping malls in Los Angeles, Las Vegas and New York City”, said Pierre Gervois, Publisher of the Shanghai Travelers’ Club magazine. “As the new generation of affluent Chinese consumers prefer to buy luxury goods overseas, Chinese investors know that it’s now better to invest in luxury retail in the U.S. rather than in China, where foreign brands have opened too many deserted outlets” Gervois added.
Chinese nationals bought more than $8.1 billion worth of real estate in the year ended March 31, representing 12 per cent of the estimated $68.2 billion of domestic property purchased by overseas nationals and second only to Canadians, according to a survey by the National Association of Realtors.
“Real estate is finally becoming a global industry and you will see capital flows on a cross-border basis, just like every other investment class,” said Rob Speyer, co-chief executive of Tishman Speyer Properties LP, which partnered in February with China Vanke Co Ltd to build a $620 million apartment project in San Francisco.
Speyer, whose company is also developing commercial, residential and retail projects in the Chinese cities of Shanghai, Chengdu and Tianjin, said he courted Vanke’s Chairman Wang Shi for more than two years, and inked their deal only 45 days after first introducing the project to him.

Not everyone is convinced that Chinese investment in the US property market will continue uninterrupted. Other options for expansion include Europe, Australia and Singapore, which account for about two-thirds of offshore Chinese real estate investment, according to Jones Lang Lasalle.
Zhang Xin, chief executive of Soho China Ltd, who paid $700 million through her family trust to buy a stake in the General Motors Building in Manhattan, said that while the US regulatory and legal environment remained attractive, valuations were getting expensive. “I would not feel as comfortable today putting in money as I did a few years ago,” Zhang said.

Source: Chinese Tourists in America