The investor World is currently obsessed with Greece, Spain and other Euro problems. Not many talk of US and the problems there, but we hear even less from China. With LIBOR manipulation, one should be asking oneself, if maybe (only maybe) the Chinese figures could be fudged? How well is the property market actually doing, and can we trust the latest figures? Great insight on the Chinese property market situation, by Patrick Chovanec.
So what’s really going on with China’s property market? Is the rebound in sales real, and if so, can it last? Is the market bottoming out, surging back, or seeing one of those false rallies that precedes an ever steeper decline? Since the decline in China’s property market since the end of last summer has been something of a leading indicator of the nation’s broader economic slowdown, and since the assumption of ever-rising property prices underwrites a large part of China’s lending, it’s important to get to the bottom of this question. If China’s property market is on truly on the mend, it bodes well for a much-anticipated recovery in the 2nd half of this year. If it’s still broken, things may get worse before they get better.