By Nicholas Hopper
Jul. 20 – China’s real estate market has seen massive development since it’s opening to private investors in the late 1990s. This rapid development, not unlike that seen in the United States before the 2008 crisis, is a risky one for several reasons, which we get into below.
For one, the disproportional value of real estate prices compared to the average citizen’s wages and standard of living has become cause for concern in today’s China. This can be seen when comparing office rental prices across various locations to each country’s GDP per capita, as illustrated by the graph below. Continue reading




ENG
ESP
FR
DE
IT




Sept. 7 – One of the issues concerning China has always been the investment into property. For the past two decades, local and regional governments have used property investment to increase their GDP figures in order to meet Central Government targets. However, this has led to unhealthy reliance on property as a provider of growth, and many instances of corruption and collusion between officials and developers. China now has a massive property bank, spread across the nation, and the on balance sheet recorded assets of local governments have dictated that these have pushed prices in China up to astronomic levels. 
