China's Ghost Cities

[Marc]

Wow - have a watch of this report.

http://www.sbs.com.au/dateline/story...s-Ghost-Cities

[essence]

Hi Marc

The link doesn't work.

[Marc]

Try now - its http://www.sbs.com.au/dateline/story...s-Ghost-Cities

[essence]

VERY interesting.

[spaceman]

It would be a problem elsewhere.... but this is China.....it'll build and build up to a point where the government will be forced to step in, the people will kow-tow to the will of the party and things will just keep rolling along.

The only thing that would cause the problem to come to a head would be the collapse of the totalitarian government....for if the government says there is no problem THERE IS NO PROBLEM.... the party knows best

Cheers
Spaeman

[speights boy]

The provinces saddled with this debt are bankrupt.
They wouldn't support the EuroBond call as they have their own debt concerns.

The borer is eating away at the foundations.

.

[Bob Kane]

Eventually China is going to implode - state controlled countries always do as they refuse to adapt/change.
But they have a lot of money up their sleeve so it could be a while.

[cube]

It would be a problem elsewhere.... but this is China.....it'll build and build up to a point where the government will be forced to step in, the people will kow-tow to the will of the party and things will just keep rolling along.

The only thing that would cause the problem to come to a head would be the collapse of the totalitarian government....for if the government says there is no problem THERE IS NO PROBLEM.... the party knows best

Cheers
Spaeman

That is what happened in USSR for 70 years - 1917-1987 thereabouts.

Mao's revolution? 1949. +70 = 2019.

Why 70 years? - time for all the original revolutionaries to die out.

[eagle]

We lived for a year in a city near Shanghai. Everywhere around us were row upon row of empty apartment blocks. A Chinese friend who worked for the local government told us that these apartment blocks were often given as presents (bribes) to officials and this was one reason so many were empty. The officials already had their own home and these were not lived in- just left empty. In China there are many many layers of officials and bribery/corruption is an accepted way of life by many.

[belgarionsmate]

My wife is chinese and her parents and some of the aunts and uncles own appartments. And guess what? They don't rent them out and they remain empty for the bulk of the year. The reason my wife gives is that to rent them out would make them "business men/women" and they don't want to be "business people". Thy're quite happy with their assets and they trust property more than the banks. Different world altogether!

[belgarionsmate]

Follow up ... Wife laughed and asked me if I hadn't seen the graphes showing the huge growth in the chinese middle class ... (sorry can't post the graphes I found as I don't have 10 posts on PT yet) ... or the prices for decent sized appartments in the major cities ... The chinese are pretty sure these appartments will fill and the govt is simply "getting ready" by ensuring "supply" outpaces "demand" which will keep property inflation in check in the future while providing stimulus in present.

A very different model to ours in the west where property price inflation is guaranteed as increased building is the result of increasing demand which has the inevitable lag which we enjoy as "capital gain".

[Rabia]

Hy...this page is not found. can you share it again.

[ChrisEdwards]

My wife is chinese and her parents and some of the aunts and uncles own appartments. And guess what? They don't rent them out and they remain empty for the bulk of the year. The reason my wife gives is that to rent them out would make them "business men/women" and they don't want to be "business people". Thy're quite happy with their assets and they trust property more than the banks. Different world altogether!

Lol. That is some weird logic they give.

[Guest]

Hello i am newbie and i am really very interested in property

[McDuck]

China is huge.
it won’t matter if every one of those small special economic zones implodes with greed.
China will just close them down, take the technology and go back to sleep.
We’ll have to rebuild our manufacturing infrastructure though.