Fears China’s housing bubble could pop as sales slow down
16 May 2014 1:24am
DIVING property sales in Chinese cities could spell the end of the bull run in the market and knock the Asian country’s economy hard, ING Investment Management warned yesterday.
Sales volumes in Beijing and Shanghai fell by 18 per cent and 17 per cent respectively in the first three weeks of April, prompting fears over the state of the market.
“This sharp decrease in real estate sales does not bode well for investment in property, or the wider Chinese economy, where this sector represents 20 per cent of GDP,” said ING Investment Management’s Maarten-Jan Bakkum.
“We expect property price dynamics to deteriorate more in the coming months.”
On top of that, surveys of businesses show demand slowing, indicating the economy is already slowing down even without a housing crash.
In other news
Friends, flatmates and family of TfL staff are currently able to use London's public transport for free, but the [Read more]
Charter Communications has finalised its $55bn (£36bn) swoop for Time Warner Cable's equity. [Read more]
The euro tumbled to a one-month low against the dollar this morning with investors unable to shake-off concerns [Read more]
We're seeing a renaissance; it’s incredibly exciting. People are better educated and the market is growing and [Read more]
Over the course of June, Greece must make four payments totalling €1.6bn (£1.1bn) to the IMF, starting with [Read more]
If we wanted to get rid of every MP who had ever told a porkie, "we'd clear out the House of Commons very fast", [Read more]
A spooky new game has taken over Twitter – but what is the Charlie Charlie challenge all about? [Read more]
John Healey, the former Labour housing minister and shadow health secretary, has announced he is running to be [Read more]
Online streaming may be on the rise, but the lure of the silver screen is still strong if Cineworld's last 19 [Read more]
The world's ageing population is causing a huge pile of debt to build up, the European chief executive of Goldman [Read more]
Stonegate, the pub company that owns Slug & Lettuce and Yates's, is considering floating on the London stock [Read more]
Ryanair's share price soared this morning as it celebrated its 30th birthday with a 66 per cent increase in [Read more]
Britain's directors want the new high speed rail line to go to Scotland, as was originally planned.
Prime Minister David Cameron received a rare phone call yesterday when Russian president Vladimir Putin rang Number [Read more]
Stocks in Athens sank three per cent yesterday despite the government reiterating that it would meet its intention [Read more]
British students with ambitions to be the next Paul Krugman should be setting their sights on obtaining a degree [Read more]
Top tourist attraction Madame Tussauds Marylebone site has been snapped up by a Taiwanese insurer in a multi-million [Read more]
June 5 will be the next crunch point in the Greek debt talks. [Read more]
The customer is king when it comes to winning amid an increasingly competitive retail landscape. [Read more]