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Home › Forums › Financial Markets/Economics › I don’t think China will save too many real estate markets
Yes, US price to income or price to rent in bubble days look so nice when you compare to China:
http://en.wikipedia.org/wiki/Chinese_property_bubble
But it is a different animal, buyers are actually not going to default in drove. Instead, it will be builders, local governments in default and forces bank runs. GDP growth in China depends on 50% investment, but hot money is going to leave its border while its internal money is also being transferred outside because the leadership change next year makes many government officers and businessmen nervous.