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Realistbear

Houses Up 17% Mo M In China -- "manic Frenzy As Everything Gets Snapped Up"

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http://www.bloomberg.com/news/2011-06-14/china-s-may-home-sales-value-rises-17-as-developers-release-new-projects.html

By Bloomberg News - Jun 14, 2011 9:21 AM GMT+0100
....
China’s May home sales transaction value
rose 17 percent from April
as developers marketed more residential projects during the Labor Day long weekend even as the government maintained its housing curbs.

When the Chinese get on a roll nothing can stop them! Millions getting in quick.

Edited by Realistbear

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Good to see that the 65 million empty homes are being snapped up then.

I don't know, it's so difficult to know who to believe nowadays, statistics from a command and control government or, erm, any other source of information.....

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Isn't property seen as an inflation hedge in China? A clear sign inflation is out of control?

Not if you ask RB - last week he was on about the current slow down in the Chinese economy.

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Isn't property seen as an inflation hedge in China? A clear sign inflation is out of control?

Sort of, paper money is NOT trusted in China at all. Going to the bank to buy some gold or silver is quite normal. Even if it is a 'barbaric relic' in HK and China you can go to the counter and buy kruggers just like that. China invented paper money and every time it has come about it has failed leading to Zimbabwe situations.

The problem with China is similar to that of the UK. I.e. there is no where safe to put it to ward off inflation. Except in China because the RMB is not freely tradable unlike HPCers they can't stick it in CHF or Euros or whatever. Therefore what options do you have?

Shares of companies Chinese investors were burned badly last crash.

Gold/Silver has confiscation issues and is extremely expensive and gives no yield.

So what would you do? Sit on your thousands of 100RMB notes? (The biggest note China has is the 100RMB which is £10) and let the government inflate them away like Realistbear advocates. Or try to protect it somehow?

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Sort of, paper money is NOT trusted in China at all. Going to the bank to buy some gold or silver is quite normal. Even if it is a 'barbaric relic' in HK and China you can go to the counter and buy kruggers just like that. China invented paper money and every time it has come about it has failed leading to Zimbabwe situations.

The problem with China is similar to that of the UK. I.e. there is no where safe to put it to ward off inflation. Except in China because the RMB is not freely tradable unlike HPCers they can't stick it in CHF or Euros or whatever. Therefore what options do you have?

Shares of companies Chinese investors were burned badly last crash.

Gold/Silver has confiscation issues and is extremely expensive and gives no yield.

So what would you do? Sit on your thousands of 100RMB notes? (The biggest note China has is the 100RMB which is £10) and let the government inflate them away like Realistbear advocates. Or try to protect it somehow?

Gold/silver has more confiscation issues than property? Gold/silver you can bury. How are you going to hide a house? Bury it? :lol::lol:

To be honest in a command economy where the state has all the power you have very few options where to store wealth.

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Gold/silver has more confiscation issues than property? Gold/silver you can bury. How are you going to hide a house? Bury it? :lol::lol:

Not in China you can't, houses have no gardens people live in hutongs or highrise, or something in between which have no places to bury it safely. That leaves stuffing it up your bum. I'd like to see you stuff a 1kilo bar up yer bum? Heh I've never gotten my brown wings in China when dating either. ;)

To be honest in a command economy where the state has all the power you have very few options where to store wealth.

Exactly

Edited by ken_ichikawa

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Not in China you can't, houses have no gardens people live in hutongs or highrise, or something in between which have no places to bury it safely. That leaves stuffing it up your bum. I'd like to see you stuff a 1kilo bar up yer bum? Heh I've never gotten my brown wings in China when dating either. ;)

Going for a walk in the countryside isn't an option then? Yes there's risk involved in that someone else might find it, but it might be a better risk than the govt taking it.

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Going for a walk in the countryside isn't an option then? Yes there's risk involved in that someone else might find it, but it might be a better risk than the govt taking it.

If you have to bury something in the countryside, and hope someone doesn't find it then, a: it is not the ideal investment vehicle, b: things have got so bad that it doesn't really matter if you have it or not, in fact it is probably a liability.

People convicted of corruption in China (which burying gold which was due to be taxed or confiscated would surely be) are often executed.

Edited by boynamedsue

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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