We’ll be in deep trouble if Chinese cash leaves
The Chinese economy has struggled and the Shanghai stock market has been in free fall since June. That’s why Chinese investors have been securing their wealth by pulling funds from China and investing elsewhere, including in Vancouver and surrounding areas.
Last year alone, Chinese investors purchased $12 billion of the $38-billion worth of real estate that was sold in Vancouver.
What’s really troubling is their stock market is starting to recover. What happens when these investors decide to cash out and bring their money home? Let’s face it, savvy investors like to buy at rock bottom. When China begins to recover, these investors will sell their real estate holdings. Prices will be forced down, interest rates will be forced up and the middle class will get decimated.
Mr. and Mrs. Joe Public who bought their first house last year won’t be able to afford their mortgage when it comes up for renewal at higher rates.
Don’t be blinded by what’s really happening here in our beloved province of beautiful B.C.
Elliott Graham, Delta