The Chinese stocks poised to gain from a stronger renminbi
Former Morgan Stanley chairman and Yale University lecturer Stephen Roach has opined in the Financial Times on ten reasons why China will continue to prosper.
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Former Morgan Stanley chairman and Yale University lecturer Stephen Roach has opined in the Financial Times on ten reasons why China will continue to prosper.
Declining growth in China has caused concern about its real estate market, with stories and videos of Chinese “ghost cities” appearing in news around the world. Legendary investor Jim Rogers however, declared in a recent interview that this concern is overstated.
Real estate stocks are on the rise, but investors should be careful. Investing in real estate and construction is a riskier proposition than investing in stocks.
Like the United and Europe, the Chinese real estate market is tottering, which imperils the entire financial system. And like the United States and Europe, China’s central bank will have to rescue its economy — as it did before — by intervening in the market.
As has been detailed in many prevous articles on www.emergingmoney.com, many market gurus think global real estate is weak and headed one way — especially in China.
October home sales fell in the United States by 1%, with analysts expecting further drops in the months ahead. If these falls in real estate continue, the prediction of uber-investor Jim Rogers that there is “100% chance” of another financial crisis will transpire.