China Real Estate As An Indicator For Global Economic Health1 June, 2011, 1:54. Posted by Zarathustra
Tags: Economy, Global, Property, Real Estate
FT Beyondbrics has this interesting comments on the Chinese real estate market and its possibly implications for the global economy.
Whether you think there is a bubble in Chinese real estate or not, the importance of the Chinese real estate sector to the Chinese economy as well as the global economy is probably undeniable.
If the Chinese real estate market cools, demand for commodities and material will also cool.
As Jonathan Anderson of UBS summed up quite nicely:
“From a macroeconomic perspective if you don’t understand Chinese property you probably don’t understand China,” says Mr Anderson. “And if you follow these commodities and industries [such as metals, cement, iron ore, coal, auto parts, construction equipment, power generation machinery etc], you are well advised to have the right call on the mainland property markets.”
The problem is whether we really understand.