JEast Posted February 17, 2012 Share Posted February 17, 2012 Though this subject has been discussed on several threads, I thought an individual thread may be worthy. We know the theme from Chano's 'China Syndrome' to H&W's concern about a potential real estate bubble. However and in the disconfirming mode, I have spoke to a few China nationals that discussed something that I had not recognized before. That is who owns the land? Much like in Mexico when an expat buys land, they are only buying a 100-year lease. My China nationals explain to me that in China all the land is owned by the government and you only buy a 70-year lease even if you are a national. Of course the market for condos and such may have bubbled up, but is the real estate actually bubbled over? And if so, will the government actually allow it to deflate. I suspect, and suspect only, that the bigger fear is the recapitalization of the banks in the provinces and the unintended consequences of taking capital out of the system (e.g. the money velocity slows). I see some select public opportunities in Singapore, Hong Kong, and Australia, but have pause about currency and impact to Asian equities. Cheers JEast Link to comment Share on other sites More sharing options...
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