Blows are being rained upon the Australian property boom, from the AFR:
The Abbott government is considering an extradition treaty with China to help Beijing repatriate corrupt officials and confiscate their assets.
Foreign Affairs Minister Julie Bishop said the treaty would be part of the Beijing declaration on anti-corruption that Australia and other nations in the region will sign at this week’s Asia-Pacific Economic Co-operation meeting.
“China has requested one and it’s under consideration, with a number of other countries,” she told The Australian Financial Review. “It’s a Chinese operation in pursuit of Chinese economic fugitives abroad.”
Chinese President Xi Jinping has launched Operation Fox Hunt to track down officials overseas and confiscate assets. Australia is a popular haven. Last week the Financial Review revealed the families of two senior government officials had questionable business and real estate investments in Sydney.
If the Australian dollar is falling at the same or faster pace than property prices are rising (and it is) then the only reason for dodgy Chinese to buy Australian bonds and property is to the safe haven play, which appears poised to fail.
Hit the bid, peeps.
