On numbers, whatever happens in China should affect more ASEAN nations than the U.S. However, the recent currency fluctuations within ASEAN nations has been due to the U.S. and all their actions. (Yes, even SGD is not spared. Read here: Weakest in Seven Years – CNBC. The events unfolding in the U.S includes the new President’s intention to Federal Reserve’s comments for 2017, every single thing is advantageous to them. Well, let’s look closer to home today, China’s property market. This is one huge market which many have been saying as ‘dangerously close to bubble bursting.’ Based on their (China) international currency reserves, I think they have many more measures that they could do and will do. Politically wise, it’s also very stable and this allows any measures to be implemented successfully.
As per reported in a Bloomberg article, its President Xi Jin Ping said, “The country should accurately understand the residential feature of housing and create a better system for purchases and rentals to better serve new urban populations. The market will play the leading role in catering to multi-layered demand, while the government will take care of basic housing demand. China will take a varied approach to regulating the property market and use an array of measures from financial and fiscal to land and taxes to better serve people’s needs. (Briefly, China will ensure its property market continue to function properly for the purposes it is supposed to serve. The property market is supposed to cool down instead of suddenly bursting due to it being way too unaffordable. Signs for a property bubble?)
If we do not know anything about China’s property market, we should. If we are worried about China’s property market, we should also understand it a little bit more. If we believe the property market may burst and bring about another crisis like the one in the U.S. in 2008, then I think we are comparing two different country fundamentals. Read more yeah. Just google. Cheers.
written on 25 Dec 2016
Next suggested article: China property: “biggest bubble in history” says China’s richest man