The nation’s housing market won’t crash like that of the U.S., Japan and Hong Kong, the official Xinhua News Agency said in an article published May 21 that called people forecasting such an outcome “doom mongers.†China will have strong housing demand because of continuing urbanization, speculative buying is less prevalent than it was in Hong Kong and mortgage debt as a proportion of GDP is lower than it was in the U.S., Xinhua said.
“China’s urbanization process is far from being over,†said Xu Gao, chief economist with Everbright Securities Co. in Beijing, who formerly worked for the World Bank. “The housing market is not seeing any structural turning point but rather suffering from a cyclical downturn, and the market can be brought back to life when policies become appropriate.â€
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What crash? Economist still see a positive contributions, authorities think the bubble can be brought back by appropriate policies.
Same raw denial in the face of evidence we saw in other places...
invite response
http://www.bloomberg.com/news/2014-05-22/what-china-property-crash-economists-see-growth-bump.html
The nation’s housing market won’t crash like that of the U.S., Japan and Hong Kong, the official Xinhua News Agency said in an article published May 21 that called people forecasting such an outcome “doom mongers.†China will have strong housing demand because of continuing urbanization, speculative buying is less prevalent than it was in Hong Kong and mortgage debt as a proportion of GDP is lower than it was in the U.S., Xinhua said.
“China’s urbanization process is far from being over,†said Xu Gao, chief economist with Everbright Securities Co. in Beijing, who formerly worked for the World Bank. “The housing market is not seeing any structural turning point but rather suffering from a cyclical downturn, and the market can be brought back to life when policies become appropriate.â€
------------------------------------
What crash? Economist still see a positive contributions, authorities think the bubble can be brought back by appropriate policies.
Same raw denial in the face of evidence we saw in other places...
China is screwed.
#housing