Chinese Companies Also Investing In Luxury Boom
The Wall Street Journal noted today that the Chinese, who have turned to the high life at sea, have begun investing not only in yachts but in the companies that make them:
This week’s announcement that Italy’s Ferretti Yachts will soon be under Chinese ownership is the latest example. China’s state-owned Shandong Heavy Industry Group Co. said it will buy a 75% stake in the yachtmaker in a deal worth EUR374 million.
China’s elites are rabid consumers of the good life and luxury fashion labels have been cashing in. In addition to watches and handbags, China’s rich are spending on leisure pursuits too. High-end hotel chains in Asia in particular report a rapid increase in the number of Chinese tourists – as much as a twenty-fold surge at one resort in the Maldives since 2008.
As the post points out, the yacht industry is not alone in attracting Chinese investment: Last week, The Wall Street Journal reported that Indian property developer DLF was close to selling high-end hotel chain Aman Resorts to Chinese bidder HNA Group.