Quote article Some pockets of the Chinese economy will take time to feel the full scale of the downturn, but the broader economy has already begun to stall, he said, with official data likely to show signs of sharp deterioration over the next six months. He puts cement companies and real-estate developers in the category that will appear somewhat resilient before a deeper downturn takes hold, with the temporary reprieve supported by earlier pre-sales of housing projects. Ultimately, however, many companies is those industries will collapse and eventually undergo consolidation, Walker said. "Property-led growth and infrastructure-led growth is just about finished," he said Walker, who adheres to the controversial Austrian school of economics, said that what's unfolding is part of the normal business cycle, in which activity contracts and investments have to be written off. He believes that China's low interest rates have helped stoke mal-investment on a scale never seen before, and that another government stimulus package appears unlikely, given a glut of overbuilding, including transportation projects such as airports. http://www.marketwatch.com/story/china-doomsayer-sees-crash-coming-2012-04-05
It can't go on forever.......And certainly not at the rate they have been developing.... Population control could have swayed all this growth also.
China's PMI is a good illustration of the easing measures used by the Chinese government to keep there PMI above 50(PMI under 50 is considered a official contraction).
At the peak of the property boom in the UK, a lot of our major cities had entire blocks of flats with no one living in them. The owners/investors, allegedly, left them empty because they didn't want tenants to devalue their investment. The Chinese have entire cities with no one living in them.. http://www.bbc.co.uk/news/magazine-17390729 It does make you wonder how big their crash will be, and how the Chinese people will react to it? I understand a lot of Chinese people have sunk all their savings in to property.
Well according to some, the better off may use overseas investments as a buffer, or they may just move: http://www.australianpropertymarket...-and-foreign-home-ownership-policy-and-rules/
