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Monday, July 2, 2012
Falling Star - Chinese Economy
On 6/30/2012, Barron's reported that the Chinese economy is slowing and is likely to slow a lot more. You can find the article here (Click to download the pdf file). The article will help us to be cautious and cognizant about the risks but not to speculate or make investment on it.
When I was in Fuzhou (福州) in Dec 2011. I witnessed at first hand many many new and empty apartment buildings (mostly 20 - 30 floors or more) between the international airport and city of Fuzhou. During the course of 2011, I also saw many reports on other cities with empty apartment buildings or shopping malls.
You may also notice just recently that many commodity prices go down including oil price. Why did oil fall from $110+ to $80?
If you have friends in China, what questions can they ask? If they have multiple real estate investments which had been doing more than fantastic, should they diversify their investment to US?
Enjoy reading this article.
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