China’s most recent capital controls, introduced on the 1st of January, are having an immediate effect, with fewer Chinese buyers able to purchase property abroad. From London to Melbourne, Vancouver to Sydney, Chinese citizens are struggling to close property transactions in some of the world’s largest property bubbles. International experts …
According to China’s National Bureau of Statistics, real estate inventory reached 686 million square meters at the end of October, up 18 per cent from a year earlier. With the average size of an urban Chinese home 60sqm, this represents an excess of approximately 11 million unsold homes. At the …
As expected, the Commonwealth Bank is today the second bank to hike interest rates out of cycle, notching rates up 15 basis points. ANZ and NAB are expected to follow. As did Westpac, the CBA blamed the rates decision on increased capital and regulatory requirements. (‘Banking regulator announces tighter capital …
Fresh data released today from the China Customs Bureau show imports to China declined 17.7 per cent in the year to September. Exports feared better, falling 1.1 per cent for the same period leading to predictions, GDP numbers to be released next week will be the weakest quarterly growth rate …
Australia is now in the grip of the largest terms of trade collapse since records started in 1959, unleashing havoc on Federal budgets that will ultimately flow through to wages and household balance sheets. The terms of trade is an index calculated by the Australian Bureau of Statistics (ABS) showing …
In an ominous sign for the global economy, the International Energy Agency (IEA) has said a sudden drop in oil demand for the second quarter of 2014 is “nothing short of remarkable.” The second quarter saw demand slow to below 0.5 million barrels per day, the lowest level in two …
Data released today from Beijing’s municipal bureau of statistics show housing sales in Beijing has plunged 39.4 percent year on year to May, a further sign China’s property market is cooling. Sales of commercial buildings, which include residential and commercial property, slumped 33.6 per cent over the same period. Today, …
Consumer confidence has crashed in Australia – just one week since the release of the Federal Budget. According to the ANZ-Roy Morgan survey out today, consumer confidence plunged 3.2 per cent last week pulling down the monthly index by 14 per cent, as word started leaking onto the street of …
Under the front page headlines of Guarding the global economy’s biggest risk, the Weekend Australian Financial Review provides us a chilling insight to the cracks emerging in China’s unprecedented property bubble. The Financial Review’s Angus Grigg writes Security guards, wearing army green, provide the first hint of trouble. An even …
The ABC’s Four Corners has tonight beamed the BBC’s doco on How China Fooled the World to the Australian public. How China fooled the world, reported by Robert Peston and presented by Kerry O’Brien, goes to air on Monday 31 March at 8.30pm on ABC1. It is replayed on Tuesday …
Reuters is today reporting, “Cash-strapped Chinese are scrambling to sell their luxury homes in Hong Kong, and some are knocking up to a fifth off the price for a quick sale, as a liquidity crunch looms on the mainland.” Norton Ng, an account manager at a Centaline Property real estate …
According to Bloomberg, Zhejiang Xingrun Real Estate Co. has collapsed with 3.5 billion yuan (USD $566.6 million) of debt. The collapse comes just days after China’s Premier Li Keqiang said China will “confront serious challenges this year” and warned to expect a wave of bankruptcies. » China Developer With $567 …
Following China’s first corporate bond default last week, Li Keqiang, Premier of the People’s Republic of China has warned “We are going to confront serious challenges this year and some challenges may be even more complex.” The lack of a bailout last week is seen as a turning point for …
As widely anticipated, troubled Shanghai Chaori Solar Energy Science and Technology Co. failed to make the scheduled interest payment on a bond this Friday, 7th March 2014. Chaori could barely scratch together five percent of the 89 million yuan due. Unlike Credit equals Gold No 1 no one stepped up …
China Wealth Management Product Credit equals Gold No 1 narrowly missed default on the 31st January 2014 with a mysterious saviour bailing the fund out and averting an emerging crisis in China’s troubled shadow banking system. Time is now running out for Shanghai Chaori Solar Energy Science and Technology Company …
The BBC in the United Kingdom has aired a program this week titled “How China Fooled the World – with Robert Peston” It re-enforces many of the posts we have made over the years and is well worth a watch. » How China Fooled the World – with Robert Peston …
A last minute bailout will see the 700 investors in a 3 billion-yuan wealth management product (WMP) called Credit equals Gold No. 1 recouping their full principal minus some interest averting an emerging crisis in China’s troubled shadow banking system – for now. The product, issued by one of China’s …
On the 18th of December 2013, the U.S. Federal Reserve finally announced it would begin to taper or wind down QE3 – an $85 billion a month shot in the arm to keep the economy afloat after the worst recession since the 1930s. Starting in January 2014, the Fed will …
Generation Y, Kev wants you on board. During Kevin Rudd’s comeback leadership victory speech he had a message for our young generation: Before I conclude, let me say a word or two to young Australians. It’s clear that many of you, in fact too many of you have looked at …
Since the GFC, Australia has literally bet the house on China. We have put all our eggs in one basket. And like Australian housing, you shouldn’t become complacent on the China miracle either. Throughout much of last decade, many western households around the world spent more than they earned. China’s …
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