China’s property liquidity trap snaps shut

Wednesday, 25 January 2023

Everybody now thinks that China is going to boom and property roar back to life. This should be greeted with skepticism.

The Middle Kingdom is rerunning the developed market GFC experience, with Chinese characteristics.

A scarred public doesn’t want a bar of property. The PBOC’s series of property sentiment are at record lows and trending down and losses have exceeded savings:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.