China Property Market Collapsing: Barrons

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CCP are FINISHED

Port Moody, Canada

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#1
Mar 4, 2013
 
MONDAY, MARCH 4, 2013
Don't Look Now But China Is Sliding
By RANDALL W. FORSYTH

While everybody is obsessing over the U.S. sequestration and Europe, China's key property sector takes a big hit.

Sometimes even 60 Minutes gets it right. The CBS newsmagazine Sunday highlighted the bubble in China's residential real-estate market and Chinese property stocks were down as much as 10% in early Monday trading.

To be sure, China announced curbs on the property sector over the weekend, including a 20% capital-gains tax to curb speculation, which provided a solid reason for the tumble in China property plays early Monday. As a result, the Shanghai Composite was down 2.5% early Monday while Hong Kong's Hang Seng was down 1%. The ripple effects were felt in Australia, where mining stocks -- which are heavily dependent on demand from China -- continued their slide with Rio Tinto (the ticker for its American depository receipt is RIO) down 1.5% in Sydney Monday morning and BHP Billiton (BHP) off 1.2%.

Now, 60 Minutes has a record for moving markets that far exceeds its financial insights. The widely watched CBS newsmagazine set off a riot in the U.S. municipal-bond market a couple of years ago by giving air to the spectacularly errant predictions in of an imminent, widespread meltdown in state and local finance from Meredith Whitney. Her prediction of hundreds of billions of muni bonds was off by 99% or so. That the financial status of some municipalities is indeed dire is highlighted by the state of Michigan getting oversight over Detroit last week. But the panic provoked by Whitney's forecast produced a great buying opportunity for anybody who truly understood the muni market.

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CCP are FINISHED

Port Moody, Canada

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#2
Mar 4, 2013
 
...
In this case, 60 minutes is boarding the bandwagon, and rather late at that. That China's economy's boom is vulnerable to a bust is hardly news to Barron's readers. In the middle of last year, Jon Laing detailed the risks facing the world's second largest economy in a cover story ("Falling Star" July 2.

The sights of Chinese ghost towns with empty high-rise apartment buildings and deserted shopping malls are well known to bears on the Middle kingdom. And they're familiar with the tales of the dreams of middle-class Chinese who own several apartments in the hopes of striking it rich in the property bull market -- which sounds all too similar to the U.S. real-estate bubble. But to see the "build it and they will come" pipe dreams depicted on America's most-watched news program has a far broader impact, rightly or wrongly, as Whitney's errant assertions showed.

In this case, however, there is a solid basis for 60 Minutes' story. China's property bubble is huge and the inevitable result of its policies, especially to cap and control its currency, the renminbi or yuan. China's trade surplus and the influx of capital made it all but impossible to restrict an expansion of domestic credit. Moreover, the development of real estate, the most credit-dependent sector, provided jobs and, eventually, places for workers to live.

As in the U.S., government policies have resulted in overbuilding in China. Will the ensuing collapse in the U.S. be prologue for China? Markets now are mulling that risk.

That speculators in Chinese real estate face big losses and mortgage defaults is less important to the market than the impact on lenders. After all, one person's liability is another person's asset. Again, as in the U.S., the real risk of a property bubble lies with the banks.

All of which is far from a secret. Well-connected Chinese have been moving money out of the country while most in China are constrained by its exchange controls, insiders report. So, while American critics, such as New York Sen. Charles Schumer, charge Beijing is suppressing the yuan's value to boost Chinese exports and put U.S. goods at a disadvantage, capital outflows suggest otherwise.

All of which is speculation at this point. But add the risk of the bursting Chinese property bubble to America's sequestration and Italy's politics in the market's volatile mix.
CCP are FINISHED

Port Moody, Canada

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#3
Mar 4, 2013
 
"China's property bubble is huge and the inevitable result of its policies, especially to cap and control its currency, the renminbi or yuan. China's trade surplus and the influx of capital made it all but impossible to restrict an expansion of domestic credit."

All on account of the "special needs" of the CCP dictatorship!

So AVOIDABLE, just like the CCP's "Great Leap Failure"!
Filmalay

Lithuania

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#4
Mar 4, 2013
 
Property market in China collapsing? Very good. Keep up the good work.
LOVE CHINA DESTROY CCP

Port Moody, Canada

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#5
Mar 4, 2013
 
The silver lining for China is that the crumbling Chinese Communist Party dictatorship will NEVER survive this.

"no pain, no gain!"
LOVE CHINA DESTROY CCP

Port Moody, Canada

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#6
Mar 4, 2013
 
" Well-connected Chinese have been moving money out of the country while most in China are constrained by its exchange controls, insiders report."

Yes, the families of the Chinese Communist Party Cadres are ALREADY SAFE IN AMERICA with the Chinese people's money!

;)

CRAFTY SWINDLERS, these CCP traitors, eh?
LOVE CHINA DESTROY CCP

Port Moody, Canada

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#7
Mar 4, 2013
 
http://www.businessinsider.com/chinas-doomsda...

^More good info. on the China Crash.

Chinese are going to lose the savings of generations.

The CCP regime is doomed.
CCP makes CHINA WEAK

Surrey, Canada

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#8
Mar 4, 2013
 
China stock markets are PLUNGING DOWN, DOWN, DOWN.........
CCP are CRIMINALS

Surrey, Canada

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#9
Mar 4, 2013
 
" Well-connected Chinese have been moving money out of the country while most in China are constrained by its exchange controls, insiders report."

Yes, the families of the Chinese Communist Party Cadres are ALREADY SAFE IN AMERICA with the Chinese people's money!

;)

CRAFTY SWINDLERS, these CCP traitors, eh?
CCP makes CHINA WEAK

Surrey, Canada

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#10
Mar 5, 2013
 
Not a single CCP member or "wu mao" is a "real man" who can deal with the facts, apparently!

They HIDE, and hope that MASS-MURDER of Chinese will again save the crumbling Chinese Communist Party dictatorship.

But will it work this time?
CCP are THIEVES

Surrey, Canada

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#11
Mar 5, 2013
 
The crucial point in discussing "Property" in CCP China is that NOBODY EXCEPT THE CHINESE COMMUNIST PARTY MASTER CLASS "owns" ANYTHING!

The whole market is for LEASEHOLDS of 40 to 70 years, that are WORTHLESS after that time, and a depreciating asset at all times!

At the end of the leasehold (after people have slaved their whole lives to pay for it) the property reverts to the CCP (unless they decide to seize it early!) and it is sold again.

This way, the regime effectively TAKES AWAY any increase in the land value, and sells the same property over and over.

It is a SCAM.
CCP are WEAK FOOLS

Surrey, Canada

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#12
Mar 5, 2013
 
"China's property bubble is huge and the inevitable result of its policies, especially to cap and control its currency, the renminbi or yuan. China's trade surplus and the influx of capital made it all but impossible to restrict an expansion of domestic credit. "
surrey stupid

Central District, Hong Kong

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#13
Mar 5, 2013
 
CCP are WEAK FOOLS wrote:
"China's property bubble is huge and the inevitable result of its policies, especially to cap and control its currency, the renminbi or yuan. China's trade surplus and the influx of capital made it all but impossible to restrict an expansion of domestic credit. "
stop barking at China, hayena, no government in the world is perfect.....that's include your western country.....you are only hypocrite.....how about the economic collapse in wall street and in europe.....you can not rebuke me.....no one is perfect....you are not perfect....you can not bark at others.....wa haha ha ha ha ha ha ha ha ha......i have 10,000,000 refugee with me, they want to go and share your home now......wa ha ha ha ha ha ha......but you reject them...so you are hypocrite.....wa ha ha ha ha....senseless barking
CRUDE RED GUARDS

Surrey, Canada

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#14
Mar 5, 2013
 
surrey stupid wrote:
<quoted text>
stop barking at China, hayena, no government in the world is perfect.....that's include your western country.....you are only hypocrite.....how about the economic collapse in wall street and in europe.....you can not rebuke me.....no one is perfect....you are not perfect....you can not bark at others.....wa haha ha ha ha ha ha ha ha ha......i have 10,000,000 refugee with me, they want to go and share your home now......wa ha ha ha ha ha ha......but you reject them...so you are hypocrite.....wa ha ha ha ha....senseless barking
What other government is so "not perfect" as to have murdered 70 MILLION of its own people?

The genocidal Maoists of the Khmer Rouge perhaps?
Nazi Germany?

You CCP scum may laugh now, and pretend your crimes against the Chinese people never happened, but that will not last, we both know that.

Then you will be crying; boo-hooo, waaaaah! Like a little baby.
CCP makes CHINA STUPID

Surrey, Canada

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#15
Mar 5, 2013
 
surrey stupid wrote:
<quoted text>
stop blah, blah blah nonsense, drivel, crude insults, more drivel, obvious lie, more drivel, etc., etc..
The crucial point you seek to evade in discussing "Property" in CCP China is that NOBODY EXCEPT THE CHINESE COMMUNIST PARTY MASTER CLASS "owns" ANYTHING!

The whole market is for LEASEHOLDS of 40 to 70 years, that are WORTHLESS after that time, and a depreciating asset at all times!

At the end of the leasehold (after people have slaved their whole lives to pay for it) the property reverts to the CCP (unless they decide to seize it early!) and it is sold again.

This way, the regime effectively TAKES AWAY any increase in the land value, and sells the same property over and over.

It is a SCAM.
bark surrey

Central District, Hong Kong

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#16
Mar 5, 2013
 

Judged:

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you surrey is the one that started the 1997 financial crisis asean nation financial demolition attack...you QE123 keeps on printing money.....wa ha ha ha ha ha ha ha.....loser now.
CCP makes CHINA STUPID

Surrey, Canada

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#17
Mar 5, 2013
 
bark surrey wrote:
you surrey is the one that started the 1997 financial crisis asean nation financial demolition attack...you QE123 keeps on printing money.....wa ha ha ha ha ha ha ha.....loser now.
Okay, I admit it. I should use the name "CCP makes CHINA VERY, VERY, VERY STUPID", but it is just too long for the system!
LOVE CHINA DESTROY CCP

Port Moody, Canada

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#18
Mar 6, 2013
 
What?

No more incoherent drivel from the ignorant Wu Mao Dang traitor to the Chinese people?

I'm disappointed! He's so stupid he's FUNNY!

HA HA HA HA HA HA HA HA!
LOVE CHINA DESTROY CCP

Surrey, Canada

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#19
Mar 6, 2013
 
bark surrey wrote:
you surrey is the one that started the 1997 financial crisis asean nation financial demolition attack...you QE123 keeps on printing money.....wa ha ha ha ha ha ha ha.....loser now.
So Surrey, British Columbia, a suburb of Vancouver, is responsible for the Asian currency crisis in 1997? I'll tell Diane Watts! Won't SHE be surprised!

Now, did you read that in "Xinhua"?

I keep telling you not to read that Xinhua crahp, it's a waste of time, mostly inaccurate and only boring repetitive propaganda! But do you listen? No.

And now you look like a COMPLETE IDIOT yet again!

tsk, tsk....

The "Qe123" nonsense is like a child learning to count.

Better see your doctor, "Comrade", you're really slipping now......

HA HA HA HA HA HA HA HA HA!

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