A couple of interesting charts today from Zero Hedge make for worrying reading if you’re betting on a Chinese property bid Downunder:
While I won’t vouch for this being anything other than a discussion point, it is of interest for China dependent property elsewhere. There is some sort of relationship here and China’s relentless tightening of the channels of capital flight will have an impact. More from the AFR today:
Chinese banks are delaying and even blocking some foreign exchange transactions under a decision by the central government to limit capital leaving the country, a move that could hurt demand for foreign assets including Australian property.
At meetings on Monday and Tuesday afternoon senior bank executives were told by the government to toughen up their capital controls.
While they haven’t introduced new rules, one executive told The Australian Financial Review, banks were using existing measures to slow the amount of money going overseas. The crackdown has seen more stringent checks for both companies and individuals.
“We are now refusing all foreign currency transfers where the documents are not fully complete … previously the requirements were not so strict,” said a bank executive in Shanghai who asked not to be named.
As H&H has said for eighteen months, the time to “hit the bid” is when it is still there.