Real estate lost sleep making the backbone of China's stock market

 Sleep makes the real estate market in China China's stock market lost its backbone
why the rest of the fire?
A lot of people to spearhead expansion which led to lack of money. This is the thinking for speculators. To see so many funds prefer to participate in a that abnormally high market lottery games, is unwilling to buy the stock cheaper than the venue. the potential to enter the domestic stock of money: hot money, credit, savings, idle industrial capital, outside the capital. as long as the expected consensus has always been with each other Traction, self-reinforcing and self-realization, the Chinese stock market has never been much worse.
current economic indicators, ever clear, beautiful macro table can support at least to the middle of next year, almost no fear. overseas markets, the 8, 9 abnormally strong month, even a large devaluation dollars, A shares have lost imagination,bailey UGG boots, malaise, recalled gains, the strongest economies in the recovery of the stock market and overseas market by most thrown behind. departure from so many overseas Dahon stunned analysts.
why the stock market does not go up, and now we gradually see to understand, the Chinese stock market (even the Chinese economy) of the backbone, the original is indeed real estate. surrounding real estate strong, only the so-called cyclical industry recovery. From 2500 to 3500 pulled the stock market is obviously the main line to follow the logic go. China's stock market's blue-chip is essentially a synonym for a cyclical industry. the real estate bubble will stimulate demand, but also enhance the performance of the company. finance, retail , construction, materials, and other areas of the company will benefit. a huge multiplier effect of the real estate bubble, but it lasts longer.
point now experiencing problems of this story. laws of the season, seems a bit insufficient purity. recent price and volume down together,UGG boots, making the stock market went to pieces, so instead of orderly disorder.
I think the Chinese stock market and then dare to pull the strong wave, to a large extent depends in real estate can take the next step, the macro-table is a beautiful excuse, not the key to the formation of market expectations.
scholars use the price earnings ratio and the rental rate of return far from unreasonable measure of prices in China, under the system it may be reasonable.
view from the supply side, the local government monopoly on land supply for the price to provide fueled engines. So under the system, the Chinese real estate enterprises is no longer simple, but the Land Bank, which has been Operating profit model is by and large land reserve to profit from future appreciation of land, as long as the money is not tight, almost no pressure real estate developers, and development to get to the money almost from the credit, the local government will control the supply for you to consciously preserve , out of so many double the rate for you and so many ways. Therefore, the and industrialization, the rigidity inherent in acceleration phase demand, monetary inflation caused by super sent panic forced completely out of consumption of housing attributes, but rather as a natural hedge with commodities like gold, so the housing prices in China do not have to look at rental rate of return.
In fact, the crux of the relaxation of credit conditions, if the banking system is willing to deterioration in the quality of future liabilities and assets that bear more responsibility, the Chinese super large enough population base, the demand for capacity to pay will not become a reality demands the release of many years . of course,UGGs, will lower China's financial sector technology leverage to enlarge its capacity constraints, but really a huge population base. Bank of China rarely take into account the mortgage lender and the first source of repayment capacity. and you want to get a mortgage in Germany If there is no regular income of more than 10 years of proven almost impossible.
short-term outlook, the Chinese housing prices soaring again, whether to enter a stage once again depends on whether banks to loosen credit conditions. the formation of short-term downward trend are likely to be difficult to achieve, as long as the money is not tight, and supply and can be controlled, face an uncertain future, the developer or to control the amount of new construction and extension of construction period to avoid the pressure of high debt.
The next two to three years,cheap UGG boots, the money supply tight and difficult material together, this round of government investment-led economic stimulus bound next year after the money supply and credit will remain a high level.
Although many reasons to support China's housing prices fell for it, but the long term, no country can resist changes in future population and social structure of the aging of the objective law, when a country's wealth, the family formed primarily by real estate, when 90 well-off families in China after have (or inherited) property more than three times, who to maintain household wealth in this country not to devalue it, it is indeed a question worth considering?