China’s real estate bubble has popped, says Nomura. The sector – long the subject of dire warnings by bearish analysts – “has passed a turning point”. It is “no longer a case of ‘if’, but rather ‘how severe’ the property market correction will be”.
A decline in real estate investment in four of China’s 25 provinces in the first quarter of this year is the first sign of slump that will spread nationwide, the analysts argue. Given the economic importance of real estate – construction and related industries are over 15% of GDP – that’s likely to push growth below [...]
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