I think at this point in time, lower Chinese RE prices will be viewed by the Chinese ruling party as stimulas to support their export plans to improve their economy.
History proves that Central Banks have a tougher time controlling deflation vs inflation, but the only way to improve the Chinese economic bubble, mainly caused by a $7,000,000,000,000.00 (thats Trillion) housing debacle is to export their way out and capture badly needed foreign currency.
However, in this instance, I think the Communist Party government has a rather keen view on lower RE prices. Even as their own EV car makers are having a struggle.
It is hard to really describe just how buggered China is right now, posting a few paragraphs on my phone. Their economy is truly in complete tatters. Have you seen the lasted reports about sales of Apple and Tesla sales in China. It truly breathtaking how much hurt they let this economic crisis become.
I would not plan on significantly higher RE prices from China anytime soon.
Well, that's my 2 Yuans worth. GLTA
LYC Price at posting:
$5.96 Sentiment: Hold Disclosure: Held
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