The Sydney Morning Herald reports, “China’s inflation problem is spreading from food into the broader economy, pushing the annual rate to a new peak of 5.5 per cent.”
While Ken Peng blames China’s inflation on higher labor costs, China’s M-2 slowed to 15.1% annual growth in May, a 30-month low.
”Inflation pressure is still large,” Li Daokui, an adviser to the People’s Bank of China.
Meanwhile, some Chinese are taking their yuan and buying property wherever they can.
“The purchase restrictions in China drove them overseas, while they look for investments to counter the inflation,” said Mo Tianquan, founder and chairman of Beijing-based SouFun Holdings Ltd., which runs China’s biggest real estate website and organizes buying excursions abroad.
Investors are grabbing everything from US$68,000 foreclosed condominiums in Florida to US$2-million beachfront villas in Vietnam, a buying spree fueled by China’s surging wealth that mirrors the country’s expanding influence in markets for gold, oil and food. The search for overseas property accelerated in the past seven months as the governments in Hong Kong and Beijing imposed purchasing and financing limits, steps that are starting to cool off domestic markets.
According to the Post, Chinese investors are also buying foreclosures in Vegas, high-end condos in New York (they love Trump!), luxury homes in Hawaii, and anything in Silicon Valley, London or Vancouver.
Property peddlers are organizing events in Hong Kong to push overseas properties. Demand is so strong, David Lau, executive director at Singapore-based property agency Roof Real Estate Group Pte. told the Post, “our next stop is going to be Guangzhou.”