1.5 per cent was wiped off the value of Australian stocks today, in part on the news the Chinese government is tightening regulations to help contain China’s Housing Bubble. The Shanghai Composite fell 3.6 per cent dragged down by some construction stocks falling as much as 10 per cent.
Australia has been one of the benefactors of this boom, supplying resources to help build these empty cities.
America’s 60 Minutes has just aired a story on China’s property bubble, dubbed the largest housing bubble in history.
China turned to fixed asset investment to help offset collapsing demand for its manufactured products during the GFC.
» China’s real estate bubble – 60 Minutes, 3rd March 2013.
» China moves to curb property speculation – Macro Business, 4th March 2013.
» Stocks slump on Chinese slowdown fears – The Sydney Morning Herald, 4th March 2013.
» China property bubble close to ‘Tipping Point’ : Zhiwe – Who Crashed the Economy, 28th September 2011.
» Is China’s Construction Bubble ready to Burst? – Who Crashed the Economy, 25th June 2011.
» China extends stress tests to steel & cement – Who Crashed the Economy, 6th August 2010.
Posted in Australian Economy, China | 19 Comments »