Thursday, February 10, 2011



There would appear to be a housing bubble in China.

According to Edward Chancellor, on 7 February 2011, at the Financial Times (China's bubbling economy):

In China the total value of all housing will probably exceed 350% of GDP this year.

This is the same level as in Japan at the height of its housing bubble.

Construction accounts for around one-quarter of economic activity in China.

This is the same level that Ireland attained before its crash.


Ponzi finance is widespread in China.

There are wasteful infrastructure projects.

Banks bypass credit restrictions when lending to such projects.

Local governments make money from providing land for such projects.

State-owned enterprises are dabbling in real estate.

The majority of the population cannot afford the posh apartments in many Chinese cities.

Speculators have bought millions of apartments that are now sitting empty.


Chinese boys posing, Xiangcheng
China - rheanna2

China can navigate rate hikes and property risks

Chinese property bubble: a myth?

Chinese property bubble: a myth? beyondbrics. / Comment / Opinion - Rising wages will burst China's bubble

China's credit bubble on borrowed time as inflation bites - Telegraph

China bull run or bubble? Six experts' views.

Chinese property bubble - Wikipedia, the free encyclopedia

Videos for bubble china

INVESTMENT Magazine - China Bubble

What will happen when China's property bubble ...

China Credit 'Bubble' Headed for Bust, Blackhorse's Duncan Says.

Property Bubble in China?

1 comment:

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