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China House Prices Continue To Fall As New Loans Surge (China’s M2 Money Supply Growth Rate Lowest Since 1996
wallstreetexaminer.com / by Anthony B. Sanders, Courtesy of Confounded Interest •
China is slowing as exemplified by their declining house prices, particularly in first tier cities (Beijing, Shanghai, Guangzhou, and Shenzhen). Second tier cities (Tianjin, Chongqing, Chengdu, Wuhan, Xiamen) did not experience the magnitude of the housing bubble that the first tier cities did. Third tier cities (Hangzhou, Chongqing, etc.) were even less exposed to housing bubbles. But all three tiers have moved in similar bubble-like patterns of house price growth.
When first tier house prices slowed in 2008, the reaction was a surge in new loans after which house prices surged … again. As house prices started to slow in 2014 and 2015, we are seeing another surge in new loans, the largest since 2009/2010. The question is … will the new surge in new loans send house prices growing again?
The post China House Prices Continue To Fall As New Loans Surge (China’s M2 Money Supply Growth Rate Lowest Since 1996 appeared first on Silver For The People.
Source: http://silveristhenew.com/2015/02/17/china-house-prices-continue-to-fall-as-new-loans-surge-chinas-m2-money-supply-growth-rate-lowest-since-1996/
