Fears grow over China property flameout

[Thomas Promise]

Will China follow the USA path to disaster?

 

http://money.cnn.com/2014/04/15/news/economy/china-property-market/index.html?iid=Lead

[Randy W]

Will China follow the USA path to disaster?

http://money.cnn.com/2014/04/15/news/economy/china-property-market/index.html?iid=Lead

fixed user link

[Randy W]

My first impression was that I thought you were talking about this (Dec., in Guangzhou)

 

http://acidcow.com/pics/20131219/tower_inferno_06.jpg

[Greg.D.]

There is a bubble - though it is slow to burst, unlike the quick burst in the West. There aren't many other investment opportunities as compared to here . . . the culture (still) believes in housing as an investment, too.

 

Bulls counter that the boom is sustainable, especially as hundreds of millions of Chinese migrate into urban areas.

This was the "back-of-the-napkin" plan but those rural people who are supposed to be moved into cities can't afford those prices. I know 2 kinds of people buying apartments in China: those with excess money who own more than one apartment (half of which are empty) and young people who have just married and who probably had big help from the family to complete their purchase. If they can stay put - they'll be okay.

 

The building/infrastructure boom is cooling, manufacturing has cooled, and credit is a mess. And, India and Africa are coming on to further take manufacturing away. I am worried. Not sure the party can react fast enough to steer things in the right direction.

 

Like most here, I also care personally about some people there and I also know that a China bust will ripple through the world's economy too, reaching the U.S.

Greg

[Randy W]

Gallery: 'Shangri-La', the incredible photo series by Alnis Stakle

At present, China is right there among the world’s most booming economies. It is estimated that over the next ten years its population growth will reach skyrocketing proportions. This will result in unprecedented levels of industrialization and urbanization—a reality of life that billions of Chinese will be facing already in the coming decade. In contemporary China, cities populated by millions have become a magnetic promised land for hordes of gold-diggers and aspiring wannabes from rural areas. According to current estimates, by 2030 the urban population of China will reach one billion. To house all these people, 50000 new skyscrapers will need to be built—an amount that equals 10 New York Cities.

 

 

https://www.youtube.com/watch?v=bJ2nUfeHGKA

[Randy W]

Gallery: 'Shangri-La', the incredible photo series by Alnis Stakle

At present, China is right there among the world’s most booming economies. It is estimated that over the next ten years its population growth will reach skyrocketing proportions. This will result in unprecedented levels of industrialization and urbanization—a reality of life that billions of Chinese will be facing already in the coming decade. In contemporary China, cities populated by millions have become a magnetic promised land for hordes of gold-diggers and aspiring wannabes from rural areas. According to current estimates, by 2030 the urban population of China will reach one billion. To house all these people, 50000 new skyscrapers will need to be built—an amount that equals 10 New York Cities.

 

 

https://www.youtube.com/watch?v=bJ2nUfeHGKA

 

 

 

This looks like a fascinating study of what a small village undergoes in the transformation - I've only caught the first part of it so far.

[Randy W]

Gallery: 'Shangri-La', the incredible photo series by Alnis Stakle

At present, China is right there among the world’s most booming economies. It is estimated that over the next ten years its population growth will reach skyrocketing proportions. This will result in unprecedented levels of industrialization and urbanization—a reality of life that billions of Chinese will be facing already in the coming decade. In contemporary China, cities populated by millions have become a magnetic promised land for hordes of gold-diggers and aspiring wannabes from rural areas. According to current estimates, by 2030 the urban population of China will reach one billion. To house all these people, 50000 new skyscrapers will need to be built—an amount that equals 10 New York Cities.

 

 

https://www.youtube.com/watch?v=bJ2nUfeHGKA

 

 

 

I rate this as a must-watch for all of us. A fascinating look at the transformation which China is undergoing. It is a six year study of the transformation of White Horse Village Wuxi County is actually part of the Chongqing municipality.

 

White Horse Village - changing China

 

The people of White Horse Village are some of the poorest citizens of this proud new city state. Until now, their only means of escape from subsistence farming was to move in search of factory of construction jobs on the coast, the muscle behind China's economic miracle.

 

Now the miracle is coming to them. Around 500m farmers need jobs in services and industry according to Beijing's count, and coastal cities can't absorb them. Beijing's answer is that new cities must rise in the fields instead.

 

[Mick]

I watched the documentary Randy and I would agree that it is a must watch for those with any kind of personal tie to China. It is well-done, thoughtful, and gives an insight into the plight of the rural villagers as well as the local party chief whose job it is to make things palatable to those who are being forced to change against their wishes. A highly recommended video. . .

[steveandrong]

Watched this at work tonight. Could not hear any of the narrative, but caught enough of the subtitles to understand. Will watch again at home when I have more time. Thanks for posting this.