Bubble or Riddle? An Asset-Pricing Approach Evaluation on China’s Housing Market

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  1. DeltaV commented on Mar 17

    Shocking! China does not believe that the Chinese housing market is in a bubble.

    If this source is accurate (https://www.thefinancialist.com/for-sale-chinese-investment-properties/) then even though housing accounts for 55% of Chinese household wealth, that percentage has actually dropped since 2008-2009.

    However, the paper itself conditions its conclusion on the persistent high growth of China’s economy. So, China’s real estate will not go down, as long as China’s economy retains its high growth rate. That makes sense. And multiple sources indicate that Chinese real estate owners do not like to sell, which implies that while there may be a bubble it is likely to deflate slowly rather than crash. If all of these assumptions are correct.

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