Look on the bright side, if prices keep going up for them we will hopefully see less sub-standard imports flooding our market.
China has its problems just as other countries. Time magazine had an article on a looming property bubble in China due to unbridled development and a slowdown in demand.
If you think the sub prime bonds or Euro crisis was daunting, then wait for this one. It will turn the world upside down. Hope the Chinese Govt can manage such a bailout and prevent a total monetary collapse.
Excellence is not a skill; its an attitude...
For Chinese consumers, it's mostly cash-based. It's almost impossible to get car financing - we paid cash for our car - really bummed me to have to fork out for that...
For the property side, it's becoming more and more difficult to get a bond here. If it's your first/only property, the requirement is about 25-35% cash deposit, and the bond is 15 - 20 years. If it's your second property, the deposit is much higher, or in some instances, the banks will decline a bond.
To keep things cool, from time to time, provincial governments either raise the deposit %, or temporarily suspend issuance of bonds. In Shenzhen for example, I've seen some properties priced similar to Hong Kong - scary stuff!
Cheers
Max
At that rate it could snowball to 2% over a year, that would set the cat among the pigeons
"Nobody who has succeeded has not failed along the way"
Arianna Huffington
Read the first 10% of my books "Didymus" and "The BEAST of BIKO BRIDGE" for free
You can also read and download 100% free my short stories "A Real Surprise" and "Pieces of Eight" at
http://www.smashwords.com/books/view/332256
South Africa wants to adopt 'the Chinese economic model', President Jacob Zuma is expected to announce this week. This would be a very grave mistake. The Chinese miracle is not what it seems.
China’s GDP and GDP growth figures have been nowhere near as spectacular as we were always led to believe. A fact that quietly slipped under the radar towards the end of 2007, when the eyes of the world were turned to the US housing market and the fear of a global economic downturn, was an announcement by the World Bank that it had revised the basis for its Chinese GDP figures.
An accomplished young business graduate in Shanghai, Matt Dale, understands China and its financial markets very well, and his explanation makes for clear and staggering reading.
His conclusion is not only that money supply growth is out of hand, placing great pressure on the renminbi, but startlingly, that the People’s Bank of China is leveraged by an astonishing 1,300 to one. A fall of just 0.07% in the value of the Chinese central bank’s assets would render it insolvent. (By contrast, the bailout- and stimulus-funding US Federal Reserve is leveraged about 50 to one, and the sovereign debt-plagued European Central Bank’s leverage ratio never peaked above 10 even during the darkest days of 2008.)
The impact of a devaluing dollar is concealed only by the continual manipulation of the renminbi. The US is right to accuse China of fiddling its exchange rate, but if China stopped doing so, it might well go bust overnight.
read the complete article at
http://dailymaverick.co.za/opinionis...morbidly-obese
"Nobody who has succeeded has not failed along the way"
Arianna Huffington
Read the first 10% of my books "Didymus" and "The BEAST of BIKO BRIDGE" for free
You can also read and download 100% free my short stories "A Real Surprise" and "Pieces of Eight" at
http://www.smashwords.com/books/view/332256
thank you for sharing)))
A solution may be to ask for a quotation in CNY and in USD.
Payment in CNY has the advantage that you do not have a double conversion i.e. ZAR to USD to CNY and related costs.
As all Chinese deals are cash up front, when payment is due, you can choose the most cost effective currency.
Excellence is not a skill; its an attitude...
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