Apr 10
6
Southridge Capital Examines China
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Southridge Capital looks at China. China is having a housing boom, as evident with Beijing’s real estate market up 71% over last year. As we have learned the hard way in the US, that growth rate is ultimately not sustainable and a correction against that type of price increase is painful. The GDP for China is over 10%, and they are raising rates to curb inflation. With all the growth, China is having to import 70% of its iron ore. As one commentator put it, China is very dependent on “the outside to provide resources.” Lastly, Google is rumored to be leaving China.