Warning was given to the greedy investors in China
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It appears that ample notice was given to greedy investors who bought excessive properties to turn around for quick profits and were caught with huge debts as the share price of this big property firm starts to collapse...........
From 2009 to 2017, the share price was moving sideways, pretty boring and lack a strong buying reason. Then, it went up almost 90 degrees within a short period of time, 2017 and causing the CCP to make statements that properties are for living not for speculation. They must know how bad the situation are with all the data collected - listed companies debts, mortgages of its people, bank interest rates, number of uncompleted buildings, etc. The supplies are simply way over the demand........
Is it possible for an important sector like real estate that contributes a major % of China's GDP to be replaced by other sectors ? With no strong stimulus from the Government to provide more assurance support, I do not see how these big boys can come out from the dark. They are still heavily in debt and holds plenty of unbuild, partial completed buildings.......
From an investor point of view, I will wait out though several tier 3 cities developers are offering properties like selling cabbage. Watch video here
Unless you have lots of spare cash and are parking some at these properties to wait out the tide to turn, the video shows low employment opportunities in these backward cities. Can one possibly consider living in these places for long term when basic amenities are not fully equipped? Much more research need to be done than simply drawn to the ridiculously low price.
It appears that ample notice was given to greedy investors who bought excessive properties to turn around for quick profits and were caught with huge debts as the share price of this big property firm starts to collapse...........
From 2009 to 2017, the share price was moving sideways, pretty boring and lack a strong buying reason. Then, it went up almost 90 degrees within a short period of time, 2017 and causing the CCP to make statements that properties are for living not for speculation. They must know how bad the situation are with all the data collected - listed companies debts, mortgages of its people, bank interest rates, number of uncompleted buildings, etc. The supplies are simply way over the demand........
Is it possible for an important sector like real estate that contributes a major % of China's GDP to be replaced by other sectors ? With no strong stimulus from the Government to provide more assurance support, I do not see how these big boys can come out from the dark. They are still heavily in debt and holds plenty of unbuild, partial completed buildings.......
From an investor point of view, I will wait out though several tier 3 cities developers are offering properties like selling cabbage. Watch video here
Unless you have lots of spare cash and are parking some at these properties to wait out the tide to turn, the video shows low employment opportunities in these backward cities. Can one possibly consider living in these places for long term when basic amenities are not fully equipped? Much more research need to be done than simply drawn to the ridiculously low price.
Comment:
www.scmp.com/bu...no-ocean-misses?module=AI_...
Comment:
the price has returned back to below its 2008 prices ...a near 20 dollar stock to a penny stock ......greed or ?