| stevehopwoodforex.com https://www.stevehopwoodforex.com/phpBB3/ Print view |
|
| Whither China? https://www.stevehopwoodforex.com/phpBB3/viewtopic.php?t=3541 |
Page 1 of 1 |
| Author: | nanningbob [ Wed May 07, 2014 11:53 pm ] |
| Post subject: | Whither China? |
Almost 15% of China's GDP comes from real estate. That is not sustainable and if it comes down to a more normal 6-8% China will have a no growth economy. Here is a note that came out: China’s weakening property market poses an increasing danger to local governments, threatening to strain their finances and intensify an economic slowdown. Land sales in 20 major cities fell 5 percent in March from a year earlier, the biggest drop in at least a year, according to China Real Estate Information Corp. data compiled by Bloomberg. The value of land sales in third-tier cities declined 27 percent last month, according to SouFun Holdings Ltd., the nation’s biggest real-estate website owner. Failure to find other revenue sources increases the risk of defaults and financial turmoil that curb economic expansion already... http://www.bloomberg.com/news/2014-05-0 ... ances.html Since most local govts in China rely on real estate for their tax income what happens to them when it stops or slows down. |
|
| All times are UTC | Page 1 of 1 |
|
Powered by phpBB® Forum Software © phpBB Limited |
|