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发帖数: 344 | 1 Hello, guys, this is your friend Yang, I'm back with some new ideas coming
up, and I would like to share them with you.
So, just let us get straight into my topic, I bet there have been many of
you frustrated my the skyrocketing housing prices, that's what I decide to
talk you about first for today. So what causes the steep rise of housing
prices in China in recent years? The first factor that I recommend you to
take into account is the huge marketing demand, server shortage of
commercial residential buildings and security housing system is on the way
putting an enormous number of people to risk of surviving. I don’t know who
authorized and qualified those landlords to carry out another typical
enclosure movement, and then bid up the land value.
But there's one thing for sure, the tremendous demand and excess liquidity
definitely heat prices up. Landlords are also businesses, they need initial
capital and financial assets too, like anyone else. Therefore, much more
foreign funds are in order, what these foreign investors need to do is to
smash all the possible barriers to enter Chinese market. Fortunately,
Chinese central government generously accepted a lot of the requests to let
these "over printed" dollars flow into Chinese industry markets. What does
that mean to us? That means we do need to print more RMB to meet the
exchange demand for receiving the excessive foreign currencies. Now,
excessive Yuan has been unconsciously created and flown into the market.
Inflation is inevitable, lower interest rate in inevitable, higher excess
liquidity is inevitable and following with unavoidable stock prices slump.
Excessive funds can contribute to bidding up housing prices and stock prices
by an amount that was never emerged in Chinese market historical data
record. Now I wanna put it aside for a while and move onto another aspect-
exchange rate.
Why does the US unprecedentedly push China forward on its currency policy?
What if China really proceeds with the RMB appreciation? As what I
mentioned above, now keep this in mind, we assume now Chinese market is
confronting a serious excess liquidity problem, and Chinese landlords keep
devouring the foreign investments. The foreign investors are waiting for
timing, a timing that they believe the value of RMB reaches its peak. When
the RMB really attains a brand new level of exchange rate at 1:5 US dollar,
they will start withdrawing their money from Chinese market. They make this
decision because they will be able to get more dollars with the over-valued
RMB, and they don’t have to be afraid of the depreciated greenbacks for
their own countries are not inflated, while the CPI is still stable. However
, what is left with Chinese people? An exhausting market with little
foreign currency to feed such a huge investing demand!!
Okay now let's pay our attention back on my early points, a series of
inevitable. Because of the withdrawal of foreign currency, all the Chinese
domestic investors including those has-been landlords will find out their
investment environment worse off for higher investment costs. Bubbles are
bursting, thus housing and stock prices slump. The people are going to be
left with a pile of valueless RMB, I don’t think they can afford to a house
in spite of the steep downturn in real estate and stock market.
Wall Street is manipulating all of these, Goldman is navigating their plan.
The openness of Chinese financial market is the priority taken into their
account comparing to a new RMB policy in their favor.
Guys, I'm so sorry about the inconvenience brought about for you to read,
and the Chinese edition will be published soon.
Please take notice at my preview for part three--------------- The financial
doomsday machine of China, foreign exchange reserves.
" it's the time for us to fight back, before doing that, let's see what we
have at all. Our financial elites are still less sophisticated and
experienced in the currency war. We don’t have perfect financial market
operators, but we do have a huge foreign reserve. Let’s imagine what's
gonna happen if Chinese government is paving a way for Chinese individual
investors to buy or borrow these reserves to purchase shares from other
countries?" ........... To be continued.. |
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