Saturday, December 11, 2010

China over-dependent on property, no demand

Quite a long video.  Summary:
1.  60% of China's GDP driven by real estate construction.
2.  They are building property at US prices that people can't afford, sitting empty.
3.  Consumption is only 5% of GDP

Bottom line - China is over-reliant on construction which has no demand.  Problem........

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