10/11/18

The "Nightmare Scenario" For Beijing: 50 Million Chinese Apartments Are Empty



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The "Nightmare Scenario" For Beijing: 50 Million Chinese Apartments Are Empty
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Back in 2017, we explained why the "fate of the world economy is in the hands of China's housing bubble." The answer was simple: for the Chinese population, and growing middle class, to keep spending vibrant and borrowing elevated, it had to feel comfortable and confident that its wealth would keep rising. However, unlike the US where the stock market is the ultimate barometer of the confidence boosting "wealth effect", in China it has always been about housing as three quarters of Chinese household assets are parked in real estate, compared to only 28% in the US, with the remainder invested financial assets.

Source: Xinhua

Beijing knows this, of course, which is .....

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