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16 interesting facts about China

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#1 Starseeker

Posted 30 November 2011 - 03:41 AM

An interesting article.  Thoughts?

Pretty soon China may be the biggest economy in the world — if it doesn't crash.

We picked out some impressive and some terrifying facts about the Middle Kingdom

Full: http://www.businessi...ina-2011-9?op=1

#2 MrFantabulous

Posted 03 December 2011 - 08:21 AM

Did you read about how China is proposing to invest in US infrastructure directly rather than loan to US?  I'm  not sure what financial return they are expecting. . but I guess it will give them more control and intelligence gathering over the US.

#3 cageface

Posted 05 December 2011 - 09:55 AM

The housing bubble in China makes me nervous. If that pops soon it's going to be ugly for everybody.

#4 Uncle Gweilo

Posted 05 December 2011 - 10:48 AM

Plenty of stories of cities being built from nothing- and noone living in them. Ordinary people can't afford the priices being asked. That has to come home to roost sooner rather than later.

#5 rogerluli

Posted 07 December 2011 - 01:57 AM

The continual lament about the HOUSING BUBBLE... :blink: is really a story of the very largest cities in China...Beijing, Shanghai, Shenzhen, Guangzhou, etc. Most Chinese people do not live in one of these cities. In the second and third tier metro areas there are much more reasonable prices for houses ranging from 3K - 5K RMB/m2.

#6 Starseeker

Posted 07 December 2011 - 11:16 AM

rofl, reasonable for who?  How many people in the second tier cities make 5000RMB a month?  Or 3000?  2000?  1500 maybe?

5000 * 40 = 200,000 RMB  40m2 is pretty small but decent enough for a family of 3 (they wish), but more likely 5 (the grandparents, to help with the kids and chores).

Let's say you make top of the tier (in a second or third tier city, which would make you connected)5000RMB a month, and it will require you 40 months which is up to 4 years without spending another dime on anything else to pay for that house.  I can also tell you that 200,000 RMB doesn't give you a house per se (it only gives you a concrete shell), you still have to renovated and furnish it.  That's what?  25-50% of the cost of the building?  So that's another 50-100,000 RMB down the drain.  What about management fees and others etc?

Iirc, you are married to a real estate developer, right?  So please don't take offense when I say your pov is skewed to say the best.  You will start to sound like some of the GOP candidates, if they don't have bread, let them eat cake.

huh?  I don't have permission to edit?

Anyway, a double post then:

edit to add:

I happen to catch a Chinese clip on real estate, and it reminded me of some points that I should add.

Chinese housing bubble is entirely created by the speculators. As the numbers shown in the article, there are actually a lot of housing development in some of these 2nd or 3rd tier cities with completely empty rooms. The actual occupying rate for some of them is below 5%. These modern ghost towns are quite eerie to behold. The Chinese government has actually brought out quite large hammers over the years to try to contain the problem, but they haven't been very successful.  Even in the plutogarchy that is China where one party holds absolute power, there are too many people making too much money to be stopped by most of these policies.

I was going to post some economist links for some figures, but they went with the WSJ model, so you have to pay to read now.  I also figures there would be no one that is seriously interested in those anyway.

It's not like there would suddenly be a serious discussion about China or its economy anyway.

Edited by Starseeker, 07 December 2011 - 11:20 AM.

#7 rogerluli

Posted 07 December 2011 - 12:11 PM

"reasonable for who?" Why for people taking western money to China to buy real estate of course... :lolipop:
But seriously it is surprising to me as well how many Chinese people there are who are moving up the economic ladder. My frame of best reference is my wife's Hunan hometown. I have been going there with her since 2003 and in those 8 years the number of cars on the streets has absolutely exploded. The numbers of families leaving behind those 40 and 50 m2 houses for 140 m2 ones has skyrocketed as well. Where does all the money come from? I'm not really sure. I did just read that only 25% of new houses bought in China today are paid for with cash. I suspect that those 40 m2 houses were all paid for with cash so yes they have discovered using Other People's Money just like westerners do. :drool:

#8 cageface

Posted 08 December 2011 - 03:08 AM

That's exactly the problem we had in the U.S.

Suddenly waitresses were buying $500k houses with no money down and then taking out a second mortgage to buy a new car and a week in the Caribbean. It all works fine as long as everybody believes prices are going nowhere but up but the second people start to get jitters the whole thing implodes.

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