A recent article in the Wall Street Journal reported that housing prices fell in February in 100 major cities in China for the sixth consecutive month. The Beijing property tightening policy is one of the causes for this drop in prices. Some developers, such as KWG Property Holding in Guangzhou, have stated they will begin cutting prices on some projects in an attempt to increase sales. The policy is also putting strain on local governments, that get much of their revenue through land sales. Some governmental measures have even begun to be reversed because of wide-spread criticism.
I thought this article was an interesting look into the economy of China. China is perceived much of the time to be such an economic powerhouse. It is interesting to read about the weaknesses that affect it's economy, in addition to the advances it is making.
http://online.wsj.com/article/SB10001424052970203986604577254640781092340.html?mod=WSJ_article_comments#articleTabs%3Darticle
Katie Robinson
At first when I heard about this article, I thought it was just the same story we are seeing here in the U.S. with the dropping housing market. Although as I continued reading, I thought this article was a different look into China's economy. Every country has its weak points and its strong points. It is interesting to read about the weaknesses, like this housing issue, as well as the stronger points that affect this economic powerhouse. Good insights!
ReplyDeleteVery interesting! Housing markets are crazy everywhere around the world it seems. It does show us that China is slowing down is some places just like the rest of the world. I guess it kind of brings some peace to us because of the fear we have of China taking over.
ReplyDeleteBy Ashleigh Hefner