Chapter 70 15. Real estate bear market: China's crisis is coming?

China's economic growth and investment have maintained a good momentum.But Western economists, mainly traders from American stock exchanges, had a heated discussion. Why not...they have conflicting views on the world, but many of them don't understand China, a country that doesn't play by western economic principles.When analyzing China's economic situation, they encountered many problems: her model, her growth, her management, her investment and what he called sustainable development. Different from the general voice in the market, some authors believe that "China's economic growth is fleeting" and "China's real estate is just a bubble that is about to burst".

Real estate developers introduce the situation of China's real estate market with the "bull market" and "bear market" in the financial world, and they express different views on the website "Who is Paying for China's Miracle".These people are regarded as the creators of China's economic myth! The argument given by some people is that they think that in the prelude to rapid urbanization in China, those buildings are sparsely populated... Of course, some buildings do fit this description, such as areas full of high-rise buildings, recently completed buildings and Paris La Lagoon. Like those commercial buildings in the De Fense business district before they were put into use!

Others believe that stocks on the Shanghai Stock Exchange can increase by more than 10 percent in one day, which sends a signal to people that the Chinese economy is not stable.When the storm hits stock exchanges around the world, isn't the world economy also unstable?Flowing international speculative capital and rising stocks keep all stock markets tied together, and one stock market will eventually affect the other. Considering politics, state structure, economy and society, some well-known economists in the economic field believe that a major crisis in China is inevitable. Exponential economic growth, the country's rapid and thorough corporate restructuring, rapid urbanization, living environment, worrying inflation, unbalanced development between regions, unfair distribution of social resources have made some people full of resentment, and so on.Clearly the crisis is everywhere...that's why China can't wait to reform!

This is why Chinese officials, scholars, and other well-known experts generally believe that it is necessary to emphasize the need to prioritize these social instability factors in reports and articles written to the government, especially those involving social inequality, lack of solidarity among the people, etc. unstable factor.Such articles often appear on the important pages of China's Internet and publications. This medium, which is full of critical voices, is regarded as a major turning point for China's media industry. But judging by the early warning signs and evidence of social crisis, real worries and dangers of social instability exist elsewhere, especially in countries suffering from soaring prices, rioting Arab countries and the West.

Fear of loss of leadership, large holdings of US treasuries, leverage of relevant factors on future indices, dangerous financial speculation, repossessions of dubious claims, deregulation of the financial sector, volatile pensions, unreliable banks and volatile currency. Speaking of which, two main questions: In order to ensure a free and better-regulated market to achieve a leap forward, when can we adjust the bad mechanism of the existing financial market, so as to avoid pushing the economy into the fire pit again? American institutions and American experts, known for their neutrality, set out to find answers to the questions, and often argued about it.

Financial analysts who are deeply in the bear market, they visit China just to conduct a comprehensive and thorough observation: Is China's take-off really based on a solid foundation and sustainable development? Unless the Chinese are very sure of using the bear market strategy to ensure their own stock trading profits.Know that in finance, the stock market and securities news, people are unscrupulous! These superficial behaviors can be understood if considered in the context of the larger picture: the turbulent Western financial markets are staged a bridge of danger, imbalance, and anxiety.All kinds of uneasiness make the western financial market unable to find a satisfactory answer for its own future:

A currency crisis lasting several years? The end of the current financial system? Is the international economic situation reborn, maintaining the existing depression or recession? The world is full of instabilities, and currently no economist can find an innovative model or model the current economic crisis based on the lessons of history. However, large U.S. investment banks such as Goldman Sachs and Morgan Stanley, as well as some real estate developers known for maintaining a neutral stance, shattered the possibility of a Chinese bubble and were very optimistic. The Goldman Sachs report predicts that in 2030, China's stock market will overwhelm the United States and climb to the position of the world's largest stock market, and China will become the world's largest economy.

On currency issues, most international organizations and economists admit that they expect emerging countries' currencies to play an increasing role compared to the US dollar and that the renminbi will become the main international reserve currency.According to the creators of the euro, the renminbi will become an international currency by 2030!