Wednesday, Aug 04, 2010

Vast new housing estates fan out from the original town center, most of them uninhabited.

Reuters: China bets future on inland cities

Though legally barred from borrowing, provinces and cities have found ways around the restrictions, often through government-backed investment firms. These financing vehicles have borrowed a total of 7.7 trillion yuan ($1.1 trillion) from banks, according to the China Banking Regulatory Commission. That alone would about double the national debt

Posted by mark @ 09:45 AM (474 views) Add Comment

2 Comments

1. drewster said...

From MoneyWeek:

He isn't worried about China being a bubble, either. Instead, the massive rise in infrastructure spending that has the bears so worried is a "vital, justified sustainable and intelligent response to urbanisation".

Quite. Would we complain if Britain spent more money on infrastructure?

Wednesday, August 4, 2010 10:58AM Report Comment
 

2. monty032 said...

Mark, of the eight articles posted so far today, you posted four of them, and only one of yours was about house prices - in China. How about giving it a rest?

Wednesday, August 4, 2010 11:45AM Report Comment
 

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