Silver as an investment

China’s “Bubble Prophet” Sees Unprecedented Surge In Home Prices

zerohedge.com / by Tyler Durden / Jun 11, 2017 4:26 PM

Beijing’s ability and eagerness, to create and roll from one bubble, whether it is in housing, equities, commodities, cars, bitcoin and so on, into the next has been extensively documented, however, of all recurring bubbles to impact the Chinese economy, housing is by far the most important. The reason for that is that housing provides Chinese society with a dramatic wealth effect, far greater than the stock market, and as Deutsche Bank calculated in March, in 2016 the rise of property prices boosted household wealth in 37 tier 1 and tier 2 cities by CNY 24 trillion, almost twice their total disposable income of RMB12.9 trillion (fig.11).

READ MORE

The post China’s “Bubble Prophet” Sees Unprecedented Surge In Home Prices appeared first on Silver For The People.