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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (35331)	6/24/2003 8:30:55 PM
From: TobagoJack	Respond to of 74559

Ramsey <<blackmarkets ... what the new exchange rate be>> supposedly 8.06 a few weeks ago, but the banks are doing 8.25-ish as they have for the past year or more. Chugs, Jay

To: Ramsey Su who wrote (35331)	6/25/2003 1:10:58 AM
From: TobagoJack	Read Replies (1) \| Respond to of 74559

Hello Ramsey, I just received this ... tempering my new enthusiasm for Chinese real estate. I feel fortunate, because bargains should be straight ahead. "Warning: China’s central bank has ordered commercial banks to stop renewing about RMB180 bn short-term loans to property developers in a bid to ease property bubble. The tightening of credit facilities to property developers will have chain reaction to other sectors. The impact will spread to the stock and debt markets, as developers may need to divest their treasury investments to repay the bank loans if they are unable to renew banking facilities on maturity. Developers may also need to lower the property prices to speed up the sales of inventories. In the worst scenario, the banks will bear higher bad debts if developers default. As the order is government’s administrative order rather than commercial decisions from banks, the government is preparing to accept short-term adverse impacts to burst property bubble. Looking at the austerity measures implemented by the China’s government in 1994-95 to contain property bubble, the property market almost took 4-5 years to recover." I understand Greensputin and Co. are still cheering on J6P to extract equity from homes, not able to see the bubble:0) Chugs, Jay