Concern about the Chinese economy heightened again with the announcement Tuesday that GDP rose just 6.9% in 2015, its lowest annual gain in 25 years. Last week, the country's benchmark Shanghai Composite index reached bear market status, meaning that it dropped at least 20% from a recent high.
Despite a rally at the end of last year, the Shanghai Composite is now more than 40% lower than its peak of 5,166.35, which it reached six months ago.
"The bottom has fallen out of the market in the last two weeks," said Francis Lun, chief executive officer at Geo Securities in Hong Kong, told Bloomberg. "Investors have lost confidence after two weeks of meddling by government officials."
Chinese and other foreign investors will undoubtedly start shifting their attention to the U.S. and other markets.
"Volatility from China is the new normal, and the sooner we get used to it the better," said Spencer Levy, CBRE's head of research for the Americas. "At the same time, a certain amount of volatility isn't all a bad thing as global instability often leads to more foreign capital flows to the safe havens, notably London and the U.S."
Among the industries most likely to benefit is real estate, which has benefited significantly from foreign investment in recent years. According to the management consultancy and accounting firm Deloitte, Chinese commercial real estate acquisitions in the U.S. totaled $8.5 billion from 2005 through March 2014. To be sure, real estate deals can be risky, particularly developments that are trying to predict business and home buying trends.