Next financial crisis in sight? A lack of stability of the Chinese real estate market could shake the position of the country as an economic power in the near future. The Exchange Portal boersennews.de points out in this context for serious signs of a real estate crisis in China. Experts stress the danger of a possible overheating of the Chinese real estate market at the present time. Current trends on the capital markets also indicate an alarming development. Due to a significant deterioration of the financial situation of many real estate companies, the capital market requires ever greater interest by Chinese real estate developers.
That China’s real estate market is not healthy, reflected also in the price developments of the shares of affected companies. This record currently far below their maximum rates. As an example country garden Ltd. can be stated here. Its shares lost their value when compared to the high price of the summer of 2007. The commercial real estate sector is the strongest of those developments affected.
The guarantee of an effective utilization of the already existing commercial real estate is expected until the year 2014. However, the boom does not break down. This means that at this point on the basis of a significant share of foreign capital caused immense overcapacity. The Shanghai composite index, which depicts Chinese stocks, dropped since 2007 from around 6000 index points to currently 2500 points. Since shares of the economy six to nine months ahead, evidence of an economic slowdown in China would have to show in the very near future. This may are reflected also on the real estate sector, for the shares of Chinese banks and real estate sector mean a crisis next consequence. More information: blog.boersennews.de/for-fun/… University Service GmbH Lisa Neumann