News Formal

China's Property Market Implosion: A More Relevant Story Than The Fed's Rate Cut

  • 📰 Investingcom
  • ⏱ Reading Time:
  • 31 sec. here
  • 7 min. at publisher
  • 📊 Quality Score:
  • News: 33%
  • Publisher: 53%

Finance Nyheter

China,Property Market,Fed Rate Cut

While the Federal Reserve's decision to cut rates by 50 basis points is significant, a more pressing issue is unfolding in China. The country's property market is facing a rapid decline as Xi Jinping implements his 'common prosperity' model, aiming for less reliance on leverage and inflated asset prices.

The news of the week is NOT the Fed cutting 50 bps - yes sure, that’s important but there is something much more relevant going on., and it’s now approaching levels last seen 8 years ago!In standard circumstances I’d tell you this is not a disaster.Chinese households hold 60%+ of their wealth in Chinese properties.

It’s because Xi Jinping wants to engineer a new ‘‘common prosperity’’ economic model which relies less on leverage, tech bubbles, bridges in the middle of nowhere and frothy house prices and more on internal consumption.inflated with absurd levels of leverage…well, that’s not an easy task to achieve.Chinese 10-year interest rates just dropped below 2% for the first time..ever?Ask Japanese people in the 1990s for reference:And of course - who am I not to spend a few words on the Fed as well.

The chart above does just that, and it compares Fed Funds with the underlying trend of US nominal growth .

 

Tack för din kommentar. Din kommentar kommer att publiceras efter att ha granskats.
Vi har sammanfattat den här nyheten så att du kan läsa den snabbt. Om du är intresserad av nyheterna kan du läsa hela texten här. Läs mer:

 /  🏆 450. in SE

Sverige Senaste nytt, Sverige Rubriker

Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.

China's Property Market: It's time to take actionChina's policymakers are likely to roll out more housing stimulus in the next 2 months as the swathe of support measures appears inadequate to stem the declines in home prices, TDS FX and Macro Strategist Alex Loo notes.
Källa: FXStreetNews - 🏆 14. / 72 Läs mer »

China's property market has 'not found a bottom' yet, Standard Chartered CEO Bill Winters saysWinters described the investing environment in China as 'difficult,' explaining consumer confidence and international investor confidence was relatively low.
Källa: CNBC - 🏆 12. / 72 Läs mer »

China regulates bond market based on market principles, state media saysChina regulates bond market based on market principles, state media says
Källa: Investingcom - 🏆 450. / 53 Läs mer »

China's PDD suffers $40 billion market cap wipeout after flagging an uncertain marketChina's PDD suffers $40 billion market cap wipeout after flagging an uncertain market
Källa: Investingcom - 🏆 450. / 53 Läs mer »

Advertising a house is ridiculously expensive in Australia—could that be affecting the property market?Australia has long been one of the most expensive places in the world to buy a house. Now, it's apparently also one of the costliest places to sell one.
Källa: physorg_com - 🏆 388. / 55 Läs mer »