How China's risk crackdown will hit Manhattan's property market

[BEIJING] China's crusade against capital outflows and leverage has ensnared some of the nation's largest property investors, including Anbang Insurance Group - the owner of New York's iconic Waldorf Astoria hotel.

The crackdown is rippling across the world, and will likely spur an 84 per cent slump in Chinese overseas property investment this year, and a further 18 per cent drop in 2018, according to a report from Morgan Stanley. The most vulnerable real-estate markets are those in the US, UK, Hong Kong and Australia, with office properties the most exposed, analysts including economist Robin Xing wrote.

Manhattan is a particular worry, with about 30 per cent of transactions in the borough that's home to Wall Street involving Chinese parties in 2017.

In Australia, China is the largest foreign real estate investor, accounting for as much as 25 per cent of office property transactions in the last two to three years, according to Morgan Stanley.

BLOOMBERG