Sunday, November 28, 2010

Property Developers Worst Performers on Shanghai Index

Ghost Towns In China Due to Property Bubble
The worst performing group on the Shanghai Composite Index this year are China’s property developers, and BNP Paribas says to expect the correction in Chinese real estate prices due to lending curbs and tighter money to intensify into 2011.

The post goes on to warn that a housing slowdown will impact the rest of the Chinese economy.

Private housing accounts for 13% of total investment in urban areas, and home construction accounts for 14% of all workers in urban areas, according to dailymarkets.com.

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