Dumping the Yuan: Financial Industry Rushes Into Land Market

This article dubs the influx of financial companies into the real estate market as an example of Gresham's Law, of bad money driving out good. In this case, financial companies with access to cheap credit flooding the market and driving out experienced real estate developers unwilling to pay what are being dubbed irrational prices.

The run-up in Chinese home and land prices has been fueled by credit, and the latest surge of non-traditional land buyers pushing up prices smacks of escape from the yuan. Furthermore, the only way prices will keep rising is if credit growth continues. The "authoritative person" has said that won't happen, but what's happened to this point is an inflation in money and credit that can only be sustained by further increases in money and credit.

Recently a second-tier urban land market fever, frequent the king, CRIC Real Estate Research Center data show that this year the country has over 118 land kings.

But we found it a land grab, a group previously deterred at the periphery of Finance "barbarians" has suddenly rushed. Just last week ransacked Hangzhou land market "Cinda" yesterday in Shanghai and take, peace, Ampang and other financial predators have come out spoiler to buy land.

In contrast, state-owned enterprises in the past ferocious, sharp private and foreign giants seem to have less 'face': former big brother Vanke to win the Queen "go back", after Greentown worried Cade "unforeseen'd rather not touch." .. small room rate we not to mention a lot of doors are even not come.

Insiders very angry ah!

Some people say we have a professional, you have what?

Barbarian say: we have money.

Some people say that we have the experience, what do you have?

Barbarian say: we have money.

Some people say we have feelings, what do you have?

Barbarian say: we have money ...

Many people are saying that "the real estate sector has no place for heroes!" But the era of finance capital, "having money" really is terrific.
iFeng: 金融业正洗劫房地产 房价只有更高没有最高?

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