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doahh

Chinese Capital Controls Threaten [to collapse] Property Bubbles

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Interesting article from ZH (some quotes from the ZH article are from Bloomberg):

Quote

For months/years we've covered the many real estate bubbles that have been inflating all over the world courtesy of Chinese billionaires looking to launder money offshore (here are just a couple of examples:  Vancouver, Sydney and New York).  But a new set of capital controls enacted in China on January 1st, and aimed specifically at curbing foreign real estate investments, may just be the needle that finally pops all those bubbles.

...

  • Customers must pledge money won’t be used for overseas purchases of property, securities, life insurance or investment-type insurance.
...

In London, Chinese citizens who clamored to purchase flats at the city’s tallest apartment tower three months ago are now struggling to transfer their down payments. In Silicon Valley, Keller Williams Realty says inquiries from China have slumped since the start of the year. And in Sydney, developers are facing “big problems” as Chinese buyers pull back, according to consultancy firm Basis Point.

...

At The Spire in London, a 67-story tower with sweeping views of the River Thames and flats starting at 595,000 pounds ($751,901), prospective buyers were caught off guard by the new rules. Less than 70 percent of clients who signed purchase contracts last year have made their initial payments, with the rest now facing “problems,’’ a press official at Greenland Holdings Corp., the project’s Shanghai-based developer, said on Jan. 12.

It will be interesting to see what effect this has on the figures in 12 months time. The criminals may well just find another route but with 70% of them having problems, this could be the end of Chinese investment if they can't.

Edited by doahh

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If I were a cynical Chinese ruling elite with a chip on my shoulder about how the British acted in the past....I'd blow a massive property bubble in Britain and it's colonies, then collapse their economies....just because I could.

Thankfully the chinese have no reason to bear a grudge....

https://en.wikipedia.org/wiki/Opium_Wars

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The more the Chinese state tries to restrict capital controls the more Chinese people will be keen to extract their money...they will find a way.  The foreign money will only stop pouring into UK property when they recognise it as a poor investment.

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2 hours ago, doahh said:

Interesting article from ZH (some quotes from the ZH article are from Bloomberg):

It will be interesting to see what effect this has on the figures in 12 months time. The criminals may well just find another route but with 70% of them having problems, this could be the end of Chinese investment if they can't.

interesting article but somewhat sceptical about their sources as they all want to remain anon.

am going to have a look around to see if I can find more articles on this.

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1 hour ago, Wayward said:

The more the Chinese state tries to restrict capital controls the more Chinese people will be keen to extract their money...they will find a way.  The foreign money will only stop pouring into UK property when they recognise it as a poor investment.

The Peoples Republic of China are Communists, all assets will be returned to the motherland. The previous owners will get a bullet in exchange.

Counter-revolutionaries, and enemies of the state.

https://en.wikipedia.org/wiki/Tiananmen_Square_protests_of_1989

Let's hope the U.S.A can get factory production up and running quickly, China may close soon.

 

Edited by Lord D'arcy Pew
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7 hours ago, TheCountOfNowhere said:

If I were a cynical Chinese ruling elite with a chip on my shoulder about how the British acted in the past....I'd blow a massive property bubble in Britain and it's colonies, then collapse their economies....just because I could.

That's what I thought. Why would they care? They don't. Now though, China's economy has slowed down and Trump is game, so China are getting their house in order stopping money leaking out from their economy.

Jack Ma probably has some credibility as the owner of a company that could eat Amazon for lunch in terms of profits and size.

http://www.cnbc.com/2017/01/26/hard-times-ahead-for-chinas-economy-says-alibaba-tycoon.html

 

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7 hours ago, Lord D'arcy Pew said:

The Peoples Republic of China are Communists, all assets will be returned to the motherland. The previous owners will get a bullet in exchange.

Counter-revolutionaries, and enemies of the state.

https://en.wikipedia.org/wiki/Tiananmen_Square_protests_of_1989

Let's hope the U.S.A can get factory production up and running quickly, China may close soon.

 

And then the mother of all mass migrations....

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