CHINESE ECONOMY ON VERGE OF COLLAPSE

http://www.investmentwatchblog.com/the-china-housing-crisis-builds-up-steam/

>So far this year, the Shanghai stock index is down 14 percent, the CSI300 has fallen 12.4 percent while China’s H-share index listed in Hong Kong is down 4.8 percent. Shanghai stocks have declined 8.1 percent this month……The Shanghai stock index is below its 50-day moving average and below its 200-day moving average

CHINESE STOCK MARKET COLLAPSING

>An index tracking major developers on the mainland slumped 4.4 percent following a near 5 percent drop the previous session

REAL ESTATE INDUSTRY COMPLETELY BTFO

>Real estate is the driver of the Chinese economy. By some estimates, it accounts (directly and indirectly) for as much as 30 per cent of gross domestic product

BUBBLE

>Chinese real estate is 35% higher per square foot compared to America despite Americans having a 700% HIGHER INCOME

BUBBLE

>In big cities, such as Beijing and Shanghai, yields are hovering around 1.5 per cent (compared to an average of about 3 per cent in the US and 4 per cent in Canada). ……Worse, developers are heavily weighted down with debt, much of it short-term. Many are paying out 7 to 8 per cent bond yields, with debt-to-equity ratios of around 380 per cent

MASSIVE BUBBLE

Real estate is already collapsing in Toronto, Vancouver, Melbourne, Sydney…notorious Chinese cities. The contagion starts in the periphery and will eventually spread to China itself. 30% of their GDP is in real estate, this is like America 2006 but an order of magnitude worse!