While China’s growth stalls, the homebuyers refusing to pay their mortgages has brought developer issues into the news once again. Yifan Hu of UBS (SWX: UBSG) Global Wealth Management, joined CNCBs Opening Call to discuss China’s housing and recovery path, which she sees as volatile and bumpy. She added:
Market stabilization
Hu stressed that China would be looking to stabilize the markets through effective policy and rate cuts, all aimed at simply stabilizing the markets and preventing a spillover effect into other areas of the economy. Additionally, Hu claims that there will still be some pressure on property and equity markets but the general impact on the overall economy will be less than what was experienced in the first half of the year. Even if effective policy and stimulus switch property sales into growth mode next year, the deterioration seen in homebuyers’ confidence could stall the recovery, as they are currently refusing to pay mortgages to protest construction delays for apartments they already paid for. Finally, if this growing pain in the housing sector drags on, there is a real possibility of it negatively affecting other industries through next year. Buy stocks now with Interactive Brokers – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
