Arab Today, arab today chinese investors buying private jets to escape volatile markets
Last Updated : GMT 18:33:13
Arab Today, arab today
Arab Today, arab today

Chinese investors buying private jets to escape volatile markets

Arab Today, arab today

Arab Today, arab today Chinese investors buying private jets to escape volatile markets

Business jets on the tarmac at Shanghai's Hongqiao airport
Shanghai - AFP

Some of China's wealthier investors are buying private jets to secure a mobile, dollar-denominated hedge against volatile financial markets and a declining yuan currency, an industry analyst said, although the overall aircraft market is struggling.

China's benchmark Shanghai stock index surged 150 percent in the 12 months to June before crashing, while the yuan, or renminbi (RMB), has depreciated since July, leading to a flight of capital from the country.

The state of financial markets has seen investors "cashing out, monetising that stock increase if you will and pouring it into an aircraft purchase", Asian Sky Group managing director Jeff Lowe said on the sidelines of China's premier business jet show, which ends Thursday.

"It allowed them the opportunity likewise to get out of RMB and get into US dollars. It's a moveable asset," he said.

China's slowing economy and corruption crackdown have clipped the wings of its once-soaring market for business jets, as yet another sector feels the pain of weaker growth in the Asian giant.

The number of business jets in mainland China grew just 3.8 percent to 300 planes in 2015, far weaker than the 16 percent annual growth in 2014, according to Asian Sky, an aviation services provider which releases an annual fleet report.

It estimates that Chinese operators took delivery of 17 new business jets and 13 pre-owned ones last year, but at the same time 19 planes left the country -- implying a net gain of 11.

"It's not shrinking, but it's growing at a pace which is less fast than before," Chadi Saade, vice president commercial for Airbus Corporate Jets, said at the show.

China's economy -- the world's second largest -- expanded 6.9 percent last year, the weakest in a quarter of a century.

Since President Xi Jinping took the helm three years ago, the government has doggedly pursued a campaign against graft and enforced an austerity programme, which has hurt the overall climate for business jets.

"China is still under the scenario that we know of, the austerity measures," said Fernando Grau, director of marketing and product strategy for executive jets of Embraer China.

But there are other longstanding issues holding up development of the Chinese market, including lack of infrastructure and strict controls on air space, much of which is under the authority of the military.

"There is no extensive general aviation network in China," he said. "That's the reason holding off the deployment of more business jets in China, the lack of take-off and parking slots."

Despite the slowdown, manufacturers said they are still seeing activity and hope for a pick-up in the years to come.

"The Chinese market though it is somewhat quiet, many aircraft have left the country and few aircraft entered... we are still optimistic," said Jean-Michel Jacob, president of Dassault Aviation Falcon in Asia-Pacific.
 

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today chinese investors buying private jets to escape volatile markets Arab Today, arab today chinese investors buying private jets to escape volatile markets

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today chinese investors buying private jets to escape volatile markets Arab Today, arab today chinese investors buying private jets to escape volatile markets

 



Arab Today, arab today Designer Rania Adel reveals her new collection

GMT 17:59 2017 Monday ,12 June

Designer Rania Adel reveals her new collection
Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Mai Al-Jeddawi presents décor ideas for Ramadan
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday