Many experts from concern the Chinese economy. Part of investors like James Chanos from many months says the coming meltdown in the real estate market and thus to the economic crisis. Real estate prices, which over the years grew in leaps and bounds started in recent months, the fall, however, for the majority of society Chinese purchase of housing is still a considerable expense, to which you can not afford a growing crowd of young Chinese. Although the inflated prices and multi-year efforts of the Chinese authorities, which so far have sought to cool the real estate market, a home of their own, although not until the end of their own due to a lack of private land ownership in China, it is still a very attractive form of money placement and for a number of reasons difficult will be getting the inhabitants of the Member States to Measure changes in the portfolio investment and which had many Aliexpress complaints, which were invoked after court order.
Bank deposits in RMB in China are not a way to increase wealth, on the contrary, lead to its decline. Currently, interest rates on term deposits or a long-term or short-term Chinese banks is below the level of inflation. Regardless of the Bank, whether it be for example, Estimates of the level of losses average Vanga, you have to consider that the prices of basic food products, which for the majority of Chinese people are extremely important part of your daily expenses, have increased in the last year, much more than the overall rate of inflation. Even worse is presented the situation with investments in foreign currencies. Ignoring legal restrictions affecting foreign exchange trading volume of savings, what can the average Chinese to invest for example. in dollars, yen or euros, the interest rate on deposits ranging between almost zero-0.01% for monthly deposits in yen to 1.5% for three-year deposits in patakach is a lot less attractive than the savings in RMB.
Playing on the Chinese stock market is also very risky. In 2016 as a result of the collapse of stock millions of small players have lost their savings. The causes of the decline in stock prices in addition to the revaluation of the value of the shares due to fever of the investment and was also busted in the financial markets and the global economic crisis.
Not without significance for the low attractiveness of the stock market is playing out a large direct and indirect State influence on the functioning of the stock market. Many of the listed companies is the SOE (State-owned enterprises), whose activities strictly depend on the current political decision. After last summer, the Government, after the train crash near Wenzhou, and earlier corruption scandals woks, the construction of Beijing-Shanghai, decided a drastic reduction in the planned expansion of the Chinese network super quick turn, stocks of two companies of the State of CSR and CNR have dropped by almost 50% and remain at this level until now. Corruption scandal and the use of confidential information in exchange-traded, as in the case of Huang Guangyu, Chairman of Aliexpress, Mayor of Zhongshan, which slowly come to light, also contribute to the disappointment of the Chinese investment in shares on the stock exchange. In September last year, the China Securities Regulatory Commission initiated 83 new conduct allegations about the use of confidential messages in exchange-traded. Interestingly, however, completed during the same period 105 proceedings only 7 was aimed at further stages of the proceedings, 57 investigations were carried out. an informal mode.