Yes.....and it's happened WAY TOO QUICKLY and un-naturally They have primed the pump with an amazing amount of debt. Going from 8 trillion of corporate debt in 2008 to over 30 trillion today Now 22% of these loans are non-performing and the only answer is a currency devaluation bail-out. CAT equipment by the thousands is sitting abandoned in Chinese fields rusting-out and none of it is actually paid-for. Is CAT on the hook with generous financing.....not sure, but I hope not. This is not going to end well.
Some truth to the comment, but the other side of the matter is that anyone who compares a photo of current day Shanghai and Beijing with a photo 50 years ago knows something really big has happened. China is still bringing more citizens I out of poverty then any country on earth ever has.
Don't disagree with your comments, however, China has 1.3 Billion citizens and the number buying property in the USA is a tiny fraction. Not unusual for very wealthy people to diversify and this is an example. Very wealthy people in developed countries have many ways to diversify. Wealthy Chinese are more limited to real estate outside China.
Last year, I heard anecdotal stories from local realtors about Chinese nationals buying homes here in Southern California. These Chinese are the ultimate insiders in the health of the Chinese economy. Is it capital flight or the desire to own a second home in Southern California?, these wealthy Chinese had one thing in common....Fear. Fear that if their actions were misinterpreted by the Chinese government, they could easily disappear. So they have their homes here in California and many sit empty because again, they don't want ANYONE to misinterpret the intent of this purchase.....a vacation home, not an investment of capital outside of China. China is a scary place, when you're a capitalist dancing on the head of the Chairman's pin.
jcdean_sandiego you may have been pretty close on your call - and it could still happen - but looking good today. - China is still growing at more than DOUBLE the US rate of growth. - yes slower than the last 25 years -but still more than DOUBLE the US rate of growth.
The yield is not high enough for me to invest in this. I agree with your assessment not to pull the trigger just yet. I'd consider nibbling at sub $50.
I'll keep this short and sweet...Google "Penny Stock 101 org' signup for their free newsletter and get their next trade alert. Come back and thank me tomorrow!
When asked by the CNBC moderator what his china growth estimate was for 2016, he answered "whatever they say it is". So right Jim, if the numbers are fabricated by the central government, you can't actually predict the growth rate, you have to predict the figure the Chinese central planners will fabricate for the future periods. So you have to predict the extent of the lie, wassa matter Jim, not up for it?
This is a cyclical stock. It is at the lower end of a cycle now. It has a below market PE and a good dividend. - and Apple penetration is still growing rapidly in china.
apple penetration increasing. This stock tends to channel up and down - sub 60 being on the down side of the cycle. - Good stable dividend. - limited downside from here.