March 4, 2013
China’s property stocks are selling off today on news of new efforts to contain the hot Chinese property market.
Some expert praise China’s efforts to actively contain what many think is an asset bubble.
But according to a new 60 Minutes report, China’s regulators may already be too late.
You see, China’s economic growth has brought riches to the middle class. But that middle class cannot invest abroad and bank returns are paltry. And the Chinese have been turned off by their extremely volatile stock market. Just look at today’s massive today’s sell-off, and you can see why.
With nowhere else to put their money, the Chinese have been shoveling their money into real estate, which has fueled a massive building boom.
The problem is no one is moving into many of these new properties.
This article was posted: Monday, March 4, 2013 at 6:53 am