Sunday, December 19, 2010

In China, if you build they will not necessarily come


Massive amounts of construction in China sit empty

From spending three weeks in China last year I was struck by the construction taking place wherever you look whether in the city's or the hinterlands. Taking a high speed train you will notice buildings going up in the middle of nowhere that begged the question of who exactly it was that would be buying and living there.

In China it is unquestionably true that the government will mandate that people move at its discretion, but even in a country with the population of China there is only so much movement, so much income and so much need.


These images appear to show total desertion and a bubble about to burst as building was done to take advantage of the interest in investment coupled with high prices. Sounds eerily familiar.

Investment manager Jim Chanos has said that China is on an "economic treadmill to hell" and that it could be "Dubai times 1000."

Wang Shi, the chairman of the largest property developer in China sounded the alarm saying:

"It could be really, really bad without the government stepping in."

"If the bubble bursts, Japan's past will be China's present."



These satellite images are courtesy of the Daily Mail. More in-depth analysis can be read at this link.


No comments :

Post a Comment

;