It may feel like the impending collapse of China’s largest property developer, Evergrande, and the fortunes of the Australian economy and our sharemarket are distant or circuitous. The reality is they are neither.
to collapse. It is clearly prepared to suffer the domino effect it will trigger on other highly indebted Chinese real estate companies. Meanwhile, investors in Australia’s three major iron ore producers, Fortescue, Rio Tinto and BHP have seen billions of dollars in value evaporate over the past five days as their share prices have tumbled between 6.5 per cent and 18 per cent - even after a reprieve on Tuesday which saw their prices inch up marginally.
US equity markets suffered big falls on Monday as concerns over the need to raise the federal government’s debt ceiling, ongoing worries about the pandemic and the potential theThere is no doubt that the collapse of large indebted property companies will have a contagion effect on the broader Chinese economy as well as international players that hold billions in bonds in Chinese property companies.
EKnightOfficial On the contrary, that's gold news. Bad news = more QE & lower rate = higher house price.
EKnightOfficial Who said that?
EKnightOfficial China's massive construction industry needs to be constantly in use for its continued expansion. Perhaps the higher prices are preventing new buildings which would lead to an implosion of the industry and a long term negative effect on the economy.
EKnightOfficial I actually hope the Australian investment property market crashes. That will be a bad thing for investors, but good for people wanting to be owner occupiers.
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No bubbles in sight, but Australia’s property boom comes at a costWe need to consider what are we giving up by letting home values inflate so high, writes Jess_Irvine Jess_Irvine You mean, our entire economy and fed policy being held hostage by this monster industry that arrests actual social housing policy and has placed white collar millennials in crippling life-long debt? It was a bad idea. Jess_Irvine It is not good for Australia if you require intergenerational wealth to buy a house. The middle class will/is disappearing. Jess_Irvine Evergrande would've made a killing in these markets here LOL.
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Chinese property giant’s implosion unsettles vulnerable marketsAn Evergrande collapse, whether controlled or not, will have major spill-over effects both within China and within international markets | OPINION china property evergrande
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