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The
Sydney Morning Herald reports,
“China’s inflation problem is spreading from food into the
broader economy, pushing the annual rate to a new peak of 5.5 per
cent.”
While Ken Peng blames
China’s inflation on higher labor costs, China’s M-2 slowed to
15.1% annual growth in May, a 30-month low.
”Inflation pressure is still large,” Li Daokui, an adviser to the People’s Bank of China.
Meanwhile, some Chinese are taking their yuan and buying property wherever they can.
“The purchase restrictions in China drove them
overseas, while they look for investments to counter the inflation,” said
Mo Tianquan, founder and chairman of Beijing-based SouFun Holdings Ltd., which runs China’s biggest
real estate website and organizes buying excursions abroad.
The Financial
Post reports,
Investors are grabbing everything from US$68,000
foreclosed condominiums in Florida to US$2-million beachfront villas in
Vietnam, a buying spree fueled by China’s surging wealth that mirrors
the country’s expanding influence in markets for gold, oil and food.
The search for overseas property accelerated in the past seven months as the
governments in Hong Kong and Beijing imposed purchasing and financing limits,
steps that are starting to cool off domestic markets.
According to the Post, Chinese investors are also
buying foreclosures in Vegas, high-end condos
in New York (they love Trump!), luxury homes in Hawaii, and anything in
Silicon Valley, London or Vancouver.
Property peddlers are organizing events in Hong Kong
to push overseas properties. Demand is so strong, David Lau,
executive director at Singapore-based property agency Roof Real Estate Group Pte. told the Post, “our
next stop is going to be Guangzhou.”
Douglas French
Mises.org
Douglas French is president
of the Mises Institute and author of Early Speculative Bubbles &
Increases in the Money Supply. See his tribute to Murray Rothbard.
Article originally published
on www.Mises.org. By authorization of the
author
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