In China, prices of new homes fell on average for the fourth consecutive month in August, down 1.1 per cent from the previous month. The amount of floor space sold fell 12.4 per cent in August from the same month a year earlier, reports FT.
There has been spectacular growth in China as a result of the movement away from true communist regu;ation. However, in many ways, the Chinese economy is still heavily is interfered with by the government. And, tragically, the Chinese central bank has adopted the western manipulations of money supply and interest rates as its model.
This has led to spectacular distortions in the capital structure of China. We are only starting to see the early stages of what will become the Great Unwind. China could be facing one of the greatest financial collapses in history.
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