China Ceramics Co. Ltd. (CCLTF)

[redman_2014]

Good article about housing in China

Fi posted this on the CGS board. Has some good logical statistics about why the bubble might not be a bubble at all.

Here are a couple excerpts:

'Leverage is also an important indicator in judging how susceptible a housing market is to growing into a bubble. The chart below, also from BCA Research, shows debt as a percentage of disposable income in China and in a number of developed-market countries. More than half of the developed countries had debt in excess of income, with Denmark and Ireland pushing 200%. China is at the far other end, with (personal) debt totaling just 44% of disposable income. Furthermore, homebuyers in China put down at least 20% as a down payment (30% for a first-time buyer and 40% for a second-home buyer to damp down speculation). These buyers rarely fall behind on their mortgage payments.'

'For example, the government's "second mortgage rule" requiring much higher down payments is having some effect – in January, price appreciation rose less than 1% month-over-month, down from a 2.1% jump in December. The government has also ordered that developers build more economical homes.'

http://www.stockhouse.com/Columnists/2010/Apr/14/No-housing-bubble-in-China


-Adam