Property buble in developing countries like China and India are fundamentally different from property bubles in developed countries like France, Italy or Spain, simply because developing countries are still in the process of urbanization and more buildings are needed in the long run. These buildings might be empty right now, but remember, there are still over 600 million ppl in China hoping/waiting to move to the cities for much higher quality of life. That's not the case in Europe or US.
I remember when they were building the five big airports in the cities around the pearl delta in the late 1990s, in the same cities where these empty buildings are in Guangzhou, Dongguan, Shenzhen, etc, everybody criticized these city officals and thought it was going to be a huge waste. By the time they barely finished building all 5 airports, they found it was not enough to meet the demand for air traffic in the region, because the delta has 100 million residents.
What are the names of these skyscrapers and the cities that they reside in? I know the first black cylindrical one is in guangzhou, but i had no idea it was, or still is, empty. Amazing! Wish this guy would do a follow up.
@lmubruin His fund was up by nearly 40% in the year to August, but that is not to say he made 40% profit. I don't know how much his fund was when it started or how did it perform last year, but according to the same Economist article which reported his 40% gain this year, "without a sustained fall in asset prices, it is unclear he will make back much more than he spent". I guess that means his fund was losing a lot of money before this year. This 40% gain only made it close to break-even.
To me,Japan continues to be Asia's largest economy regardless the media may say.striking high-rises and skyscrapers? Japan also has that.there are still an awful lot of poverty in the remotest area of China.I like China,but I still think Japan is a lot greatest than China.
@nostalgiamelancolia1 The Japs are hardy people, their geographical shortcomings (earthwquakes, tsunami etc) and their WW2 wipe out have made them tough little cookies.
empty, entire cities in china are empty, the largest mall there is completely empty, the national stadium in beijing, barely used after the olympics, paint peeling of, china is the world´s largest ponzi scheme, internal consumption? in 2009&2010 china claimed economic growth data that simply did not correspond to reality. they are cooking the books,
Now it seems that China is the world's second-largest economy. We've been told for some time that this is a global recession. Looking more like a western recession ie the free market system has failed.Not sure whether China is borrowing billions for these building - they seem to have spare capital coming out of their ears. They are probably just planning ahead for when all our corporations relocate over there.
@nowthatsinteresting1 They don't have 'spare capital' , they have 'cheap labour'. Those buildings could not be built if the wages were truly based on market forces. The empty buildings almost prove that. The other piece is that the 'capital' is being printed out of thin air. The banks can lend as much as they want willy nilly.
the chinese state, with the way they are used to thinking and doing things, probably preferred to build everything all at once, then lure in tenants. maybe an inneficient, risky plan but its probably the best they could do. Russia has done many things that dont make sense either, its the communist habit.
sure is quiet in that "central business district"......
When the worldwide program of chemtrailing moves from soft-kill boron and aluminum to plutonium waste/biological cancer super viruses- tenancy wont be a problem- the living will envy the dead.
in fact, China absorbs the capital and the technology from foreign countries,
absorbs manpower from a domestic poorest segment of the population,
and, destroys overseas industry by exporting the commodity to foreign countries cheaply in the background of the former rate suppressed to low unjustified, and has deprived of employment.
china is rich and fascinating market for all country.
but, if we depend on chinese economy ''too far'', we gonna face a crisis.
@aidanqn from what i been researching is since consumption is still slowing down many chinese are loosing jobs and factories are closing. To boost growth the chinese are building things there is no demand for. Many empty buildings everywhere that are being built just to keep people employed. Cars are being built when there is no demand. The money will run out and get ready for the chinese crash. That already happened to the russians.
Geez, if you really want to know whether Chinese bubbles exist, check out the bubble mentality of the pro-Chinese commenters here: "the US needs socialism," "buildings will get occupied then it will be up, up, and away again," "China had the biggest GDP 18 of the last 20 centuries." The saber-rattling on territory issues, defending past leaders against perceived foreign slights and anti-Semitism merely distract people from real issues. I've seen this story play out in Japan. It's not pretty.
Heh, dragondescent, you are full of it. Even for a nationalist, your arguments are flimsy. The GDP numbers for "18 of the past 20 centuries" are based on...nothing, and are simply a quip by a former governor of Hong Kong. Even by the 1400s, China was already lagging behind Europe in any developmental or geopolitical category that mattered. China is not a superpower and it will have its crashes like every other country that has ever adhered to capitalism. (N.B.: not "capitolism.")
China has ambition and a large population thats what makes a super power these days. The USA has the biggest population in the developed world hence their power.
FUCK DEMOCRACY ! Their I said it . Why say it ? I`ll explain simpley - My country and other western countries could never match the genius Chinese economy , our governments and Bankers exploit us and spend the money on things like property and making their lives better , China however is very conservative and spends all money properly among the population and does not get itself into economic meltdown . Really we must learn .
@legion0101 , funny how people like you are always wishing and hoping for China to go down. Let me tell you, a recession in China isn't gonna help anyone- not you, notme. It will screw the world over, in much the same way that a US recession has screwed everyone.
China's GDP will takeover Japan pretty soon. Japan will be no longer 2nd in world strong economy but China will be. Very soon. Watch!!!
It's been proven that China & India already took over mutual fund markets(and of course USA is still #1) from Japan who used to be #2. Japan is not #2 any longer. China & India #2 & #3.
@ycformosa I didn't say it did. China should belong to Taiwan as Taiwan has the legitimate Chinese government and not that corrupt communist scum in Beijing.
@mrdiscus66 lets not get into who belongs to who.
we all know north and south america belong to native americans australia and new zealand belong to aboriginals and israel shouldn't exist. so dont even go there girlfriend.
@chestnutstime Most governments are corrupt up to a point. But they don't go around murdering millions of their own people. The Chinese gov. sucks big time and because of that western countries should boycott China and recognise Taiwanese independence. China should be isolated until it gets out of Tibet,stops supporting North Korea and gets some form of democratic government. The West doesn't need the shit China makes and more to the point can't even afford it nowadays.
Isolate China? Just keep on dreaming, dumbass. The US owes China trillions of dollars. Isolating China is like killing themselves. Taiwan and Tibet will always be a part of China no matter it is democratic or dictatorship. Only shithead believe Tibet will get independent.
@maomao667 Without massive exports China would go back to the Dark Ages. Whilst everyone else would be rid of the shit you make. Chinese communist government sucks on so many levels it should be isolated. Then they could concentrate on learning some manners or perhaps murdering more Tibetan monks. If Taiwan is part of China how come they've got armed forces that are good enough to stop you thugs invading them?
Your laughable comment just show how dumb and brainless you are. Not only China's economy depends on massive exports, but also US and other European countries. China's products can also be sold well in Africa, if the west stop importing it. Chinese communist government is very effeicent after the open policy was taken. It makes China economic miracle real. And I don't think any democracy system can run a country with 1.4 billion people very well.
Because democracy doesn't solve any problem. Got that? Just look at the democracy in India. I think it actually gives real democracy a bad name, doesn't it? As for the Taiwan, those weapons are bought by the pathetic seperatists who want to get independent. But unfortunately, even the US government and UN admit Taiwan is a part of China. Is that clear? Dumbass?
@maomao667 UR the dumbass communist stooge. Taiwan has it's own government and better quality armed forces. China is like Hitler's Germany. First they want Tibet then H.Kong then Taiwan. Next it'll be Japan. You greedy bastards won't stop until you've started the Third World War and no-one will win that. Incidentally Mao probably killed as many people as Hitler and most of them were Chinese.
You fucking stupid western propoganda dog. Why would China want to take Japan? Tibet, Hong Kong and Taiwan belongs to China since ancient time. You fucking evil western cockroach has never stop trying spliting up China. Who is the greedy bastard now? It is you who started industrial revolution and clonizing other countries. If it's a world war 3, then you are the one that started it. So fuck you piece of shit !!!
@maomao667 You are a typical aggressive, bad-mannered Chinese communist. If Tibet belonged to China why did they have to invade it in 1950's. Half of Hong Kong should have remained British forever cos your government signed a treaty to this end. The Hong Kong people didn't want to be part of China so why should the commy thugs take control of it? If China is so good how come most of the people will do anything to escape? Face it it's just one big dirty slave labour camp.
It is true that China is ruled by the communist dictatorship, but the sitiuation is getting much better since the CCP took the open policy. China's freedom and human rights is not as bad as Mao's era. HongKong is a part of China, because not only Chinese government, but also the Chinese people can not allow their land taken by foreign intruders.
Tibet was invaded in the 1950's? Stop spreading shit that made by the fucking US government and CIA!!! Dalai lama is just a pathetic CIA agent. He used to be the biggest slave owner and religious dictator in Tibet. CIA had never stopped supplying arms to those extreme seperatists. Just like what they did in Iraq, and Afghanistan. They always utilize freedom and democracy as weapon to distablize other countries.China may be a big labour camp, but USA is the biggest trouble maker!!!
Plus, Taiwan has better quality armed forces? Muahahahahahahahahahaha
Your ridiculous comment crack me up. Taiwan always buy second-had weapons from US. That's all bullshit to China. China doesn't have to send force to Taiwan. Because China has thousands of lang range missiles. So use your fucking brain before you comment. Muahahahahahahahahahahaha
@mrdiscus66 Yes and China's outbound investment is expected to be equal with the flow of FDI into China in 2015. Investment is a key driver of every economy but China is focusing on Domestic consumption right now and not exports.
China needs to be slapped in the face and the usa dont have the balls to do it .. wow im embaresed to be an american. Will we let them take over the world? put us all at risk of there influence
Beware Asian American people or the Banana Chinese, America migth restate the anti chinese exclusion act again; Rocky Spring or Clove Portland. MOVE YOUR MONEY OUT OF AMERICA!!! The American dont like you being here!!!! Fuck Hollywood, Cnn, and BBC News full of lie... tell only half of the story
Yes but it's worse in China cos most of the crime is state sponsored ie. the government, the same government that has been murdering since 1949. Think about what you buy and where it was made. Buy from EU if that's where you,re from or US. Buying Taiwanese is a boost for their stand against the CCP.
Buy Japanese if you're after quality, problem is a lot of their stuff is made in China now and quality control has suffered tremendously.
@mrdiscus66 good luck paying 10x as much for same stuff... you think we chinese even care if you buy our stuff or not??? ... dont buy it.. then we have more for our self.... stupid igorant shit
Taiwan is all that is left of the real China after the Maoist thugs took over the mainland. The Chinese communist party is even a disgrace to the ideals of communism and has murdered more of it's own people than Stalin and Pol Pot combined.
Don't buy mainland Chinese made goods or you are supporting a basically fascist totalitarian regime.
didojj1 China invaded Tibet in 1956. Since then it has systematically raped the country and populated(polluted) it with Han Chinese. The Chinese communist government has killed more of it's own people than were killed in total in the Second World War. Learn some manners and then learn some history, and I don't mean the shit written in your little red books.
It doen't favour the West in the long-term. When there are no jobs because everything is made in China. The ridiculous debt countries such as US, Spain and UK have means what's happening now is not sustainable. Also I can't think of any Chinese goods that are not cheap and nasty. Even stuff made by Jap controlled factories in China isn't as good as the genuine Jap stuff. Also why buy Chinese and support a brutal dictatorship?
But the us government and the fucking west is utilizing democracy as a weapon and political tool to split and weaken China. China has right to choose her own way. US and the fucking west should stop criticising China, because they are not perfect either.
The West shouldn't even trade with China until it gets a democratic government, gets out of Tibet and recognizes Taiwan as an independent country. They can't make anything that is any good anyway and all their cheap exports are the product of virtual slave labour.
Until it gets a Democratic government is exacly what the West wants from China, it will be divided and weak. And Europe will always import products from China, if it weren't for China, the European economy would be far worse right now. And China doesn't export, cheap, low quality products anymore.
mrdiscus66 , why don't you stupid whites liberate yourselves from the control of smart jews first , then come to save we "poor" chinese ,tibetians, etc ? china's land will always belong to chinese ppl , get it ? don't mess with our ppl.
Their economy is not a bubble based speculative economy of Japan in the 80s or ours of 90s. Their growth is centered on infrastructure, real estate, exports and transition of labour. They also have a strong central bank that just cut lending to avoid speculation. It is very doubtful that their economy will crash like ours, that's unless they make their markets lassez-faire which is also doubtful.
yes and the residential high rises are about 90% empty, and unfinished. the question is: is there REALLY an emerging chinese middle class to compensate or replace the american consumer, and if so, what will happen to china's manufacturing base? the high percentage of investor owned units means in a true real estate market (a for profit market) rents would be collapsed to reflect a true market. not the case; rents in china are subsidized, just like employment.
ya 90% empty at 2pm when everyone is at work.... dont buy into this bullshit. its juts like the videos where ppl go to malls before they open and say how nobody is shopping
no i was there. they are empty. its 'non productive' production; same as the employment situation there; employees standing around; 10 per customer. this is government controlled economics, and it does not reflect a REAL, for profit marketplace.
The way I see it he is in Guangzhou which is China's major Southern manufacturing base. Almost all Chinese manufactured exports flow through or are made in Guangzhou. So I think this video is misleading, because Guangzhou is heavily dependent on export. However if you look at cities such as Chongqing and other cities in the interior and to the North of China and some on the coast, like Shanghai, they are still booming. If anything China has proven that it is robust enough to weather the crisis.
all i know is there are significant numbers of empty high rise commercial and residential buildings like this in Beijing and Tian Jin, Tian Jin was way overbuilt in 2005. those cities you mentoned i dont know about; im sure your right about shanghai / hong kong.
You should read into Chongqing, many officials hope it will be China's Chicago. Because just like Chicago did in the early 20th century, it it hoped it will shift China's economic boom from the coast to the interior. The city is booming, but it is based almost entirely on domestic demand because it is so far into China's hinterland. One major reason China has been so fortunate in the economic crisis is because much of the export meant for Western markets has been redirected to cities like this.
Allow me to make an assumption that you do not really understand the Chinese economy. If you know how to and how much money you can make, you wouldn't be surprised.
Btw not everyone borrows to build in China. They have enough cash flow to burn.
but that is a major disfunction in any economy. it is also a harbinger of a bubble. in a real, for profit economy, there is no "money to burn". this concept, although a factor in the ultra rich, is not among the real working classes that economies ultimately depend upon..
Thank you for your response as I never expected any. That was also my first time to join any discussion on YouTube.
Personally I came from China, then I spent the last 8 out of 22 years in a western country.
I have read a whole book about Chinese property bubble early this year. There is certainly 'bubble' but that bubble is not going to blow in most of the cities.
In fact, the bubble in residential price is mostly pushed up by working class. Bcoz demand is so huge, then speculators came in.
This video is humorous... Absolutely no visual confirmation as to what he is saying. I could walk over to my downtown skyscrapers on any given sunday and make them look deserted too.
(Sure, there will be traffic in the streets, but everything else would look empty)
Yeah, it never fails to amaze me how so few posters here seem to realize the need for wireless lapel mics combined with a camera with an external mic input. They aren't that expensive or physically obvious. And money would be no object for this guy even if that hardware was extremely expensive which it is not.
Check out the real story about currency devaluation - globaleconomicanalysis d0h blogspot d0h c0m - China is busy ramping up production for consumers that don't exist: Not in the US, not in the EU, and not in China (not yet)
This is just a video of 1 person.....and has no prove of what the real reasons. I can take the same identical video, edit the words to read like China is on an unending boom and are you folks out there suppose to believe China in on a tear?
Yes....I am in commercial real estate. And the vacancies are up at its highest ever...and look at the US stock market...crazy wall street doing their usual thing......scamming all day long. Karma will catch up to each and every one of them
Same like in US. boat loads of empty building like China and the difference is, all are quite about it...hoping it will fade away. I say crash the CMBS market for correction now sooner than later.
Once all that money that went into stock market speculation gets scared that it will get beaten down again, world markets should start to come apart at a pace faster than last time around. Remember that quaint saying, "Fool me once, shame on you. Fool me twice, shame on me?"
The first building (the first to be built out of a pair of twins) is Guanzhou East tower, and sure it's empty. It isn't even finished -_-. The second is Minisheg bank building, with one major tenent. Guess who?
Sure, China is have growing pains, and maybe it won't, maybe it will surpass the US and the EU as an economic power. Lets not be sinophobic about it though.
KingGodog: "Lets not be sinophobic about it though."
-The best answer I've seen so far. I, too, can't help but notice this sinophobia going on.
If it's not about governments, it's about military, if not, then it's about economy...
It's almost as if they're happy about China's economic problems (or wish for it) while not even knowing the consequences of how it will affect their own country.
Ok, here is the thing. 25 years ago when China was booming, Westerners who came to China laughed at China's high rise buildings and openly said "I feel sorry for the Chinese, who will move in these buildings! They are all empty! The whole thing will burst".
And what happened? China boomed and those idiots have been proven wrong. Not only were they wrong but they missed out on the biggest boom of the last century.
Er, that tower in Wuhan HAS a tenant: The Minsheng Bank. Actually that's the Minsheng Bank Building. It's empty because they are still doing the interiors, then the bank will move in. If you want to spread sinophobic propaganda at least you should try to be more convincing.
I agree partly with this guy on the video. The empty buildings sure looks troublesome and are red flags for sure. But it doesnt tell the complete story as all it signals, is a slower growth or slowdown. We know China has been growing slower due to the economic recession. So this is not news.
Also, most of the buildings are financed by and for foreign companies. If other countries are having cash problems, investments in China will of course slow down.
The guy could have been arrested and jailed for espionage if he got noticed, he couldn't exactly have been doing the loud and obvious thing here. Of course he could have shot the video and done some voice over back in a safe nation.
I attended a Texas land conference in 2007 in which one of the particpants reported that a group of CCIM's that toured China over two years ago indicated there were numerous 'see through' high rise buildings in China then. So the trend continues.
One can see why the ChiComs are buying UST's (even while whining about the yields and our creditworthiness). The UST's at 2-5 percent are better than the returns being generated by the loans on empty o.b.'s.
China's exponential economic expansion is almost exclusively confined to coastal areas, and is therefore capped. The rest of the country is underdeveloped, primitive and exists in squalor. Weak. The days of the China Miracle are numbered. Bubble.
Your guess is ridiculous and quite simple stupid. Your response proves how uneducated and uninformed you are about China. You actually thought that they werent allowed to shoot.
They shot it mister. And it goes right against your believes. They werent arrested and didnt disappear. Idiot.
The lousy sound is due to amateurism. Get your frikkin facts straight.
China brought in a law in the 70s that limited families to one child one family Surely by now the population is aging and anyone under 30 is an only child which must lead to weak Nation or perhaps a Bully Nation what are your obs from your visit?
Thanks so much for your video it proves the old Adage a picture is worth a thousand words
Who is this biased guy trying to fool? Us? Or just himself? China experiences economic growth year after year. Why? Because China has industry and exports its produce, mostly to the West. While we, in the West, pretend to make money through banking and real estate. And if he likes staring and vacant properties so much, he will find plenty to gaze at in Europe and America. Also, he might find something called a 'recession' that is happening over here...but it is not happening in China
Actually Davey Hendrys' Fund made over 35% last year, during one of the worst markets in decades.
China experiences economic growth by fixing its figures, anyone who believes everything a dictatorship like China reports is themselves a fool. China does ideed exprt to the west...lending the west the money to buy those exports. Who's the bigger fool, I don't know. As Hugh rightly points out what will happen when Chinas reserves run out, you can't "stimulate" forever.
I think you misunderstand me. China has experienced huge growth, just perhaps not as huge as the authourities would have you believe. You need to develop a bit of lateral thinking Elbotto rather then simply counting how many 0's a trillion has and acting like that is somehow relevant, while missing the point. What is that 2.2 trillion measured in? US dollars. How much of those reserves are in US bonds? Over a trillion. And what are Bernanke / Obama doing to the dollar and the US debt pile?
How can China's reserves run out? We give them money to buy their produce. We give them more money to pay back the money they have loaned us. And the Chinese bank much of the money they make. And, sorry to say this, but plenty of Western governments fix their figures too. One of the reasons for the recession is that governments, bankers and all the other dopey 'experts' kidded themselves that everything was fine, when inflation and borrowing was getting out of control
Again you seem to miss an important point. Chinas reserves are largely in dollars and US bonds. US bonds are a promise to pay someone US dollars at some time in the future. The US dollar is a fiat currency, it is not backed by anything but a promise. The Fed is destroying the value of the dollar by printing them like crazy. Its not Chinas reserves that are the problem it is the fact that they are kept in a currency that can be debased at will. China is in as precarious a position as the US.
I will have to bow to your knowledge regarding things like bearer bonds. But if things sound iffy for China, it really sounds grim for the US. A flat currency? Printing money? It sounds like it is going to be worse for the US. At least China can rely on exports. And I have doubts that China and many other countries will continue trading in American dollars in the near future. The euro is looking more and more attractive as a trading currency
I totally agree Davy I would much rather be on Chinas side of the equation then then US side. But this is the problem with the whole green shoots nonsense. None of the problems that caused the crisis have been solved just put off for further down the road. There is massive imbalance in the system and saving banks like Goldman so they can get back into the speculating trough has achieved nothing. Obama is just more of the same and has proved that by reappointing Bernanke was asleep at the wheel.
Also I wouldn't put much faith in the euro the European banks just haven't faced up to their crisis yet but it will come, soon. Banks like Deutsche Bank are 2 or 3 times more leveraged then the American average and have loans to countries like Hungary that have collapsed. Watch out for Austria in particular, its banks have loaned more then its GDP to eastern European countries mainly. Gold is the only reliable currency. You cannot print it, it is the only way to keep central banks honest.
China is a communist country that only gives it's citizens a little capitalism, that's it, the people have nothing to believe in but a little capitalism. If you take that away, you will have civil unrest. The Chinese govt has even admitted that they need 8% annual growth in order to prevent civil unrest. Right now they are achieving a little under 8% due to a China Stimulus Pkg, it's fail too like the US Stimulus Pkg and then the Chinese will revolt.
-How is that a fail? China's 7.9% growth of Q2 2009 has gotten many economists surprised. They didn't even expect China to achieve that. The US stimulus on the other hand is more, well, you know...
Seriously, you're just reflecting your own insecurities of your own country's economy. Maybe you should gear up, get your rifle, and revolt lol!
Stop reading biased "predictions" who's authors are made to eat their own words later on.
Eww, the USA is not a capitalist country and has not been for more than 3 decades. We have been a mix of capitalism, socialism and fascism. It's not the capitalist part of the economy that is failing, it's the socialist and fascist parts of the economy that is failing. The propaganda spin was to blame capitalism. Start looking at how many monopolies exist today in the USA and you will see the failure of corporatism (fascism) that is widespread here. The cure is not more of the same.
Really, who needs socialism, it's a proven failure. It fails because of basic human psychology. We are all different, and made to be that way. Socialism requires loss of economic liberty. Loss of economic liberty always, always leads to economic stagnation. This is just what it is, politics aside. You can't trump basic human nature.
For a city so huge, look at the activity around Hugh? A few peasants meandering about and the odd moped zipping by. If that was any other comparably sized city, the place would be a hive of activity.
The whole thing reminds me of the time when the Asian Tiger economies folded. They built skyscrapers in expectation of growth. They built factories in the expectation of Western demand. Despite stable growth of the West during 1997-1998, they still collapsed.
I find this useful actually. Google "China's Hidden Debt Problem". I don't think he's just forwarding his own agenda by looking at a few empty buildings. China's debt to GDP ratio according to the Reuters article is more than three times what they originally reported. So China's problem are almost just as bad as the United States, relative to their debt load anyway.
It does not fully reflect the real situation when this guy selects some obviously half completed buildings to proof , whatever agenda he has. When high growth economies slights down, occupancies might be over supplied. Developers may not want to complete the project in haste, or simply lack of fundings due to lagging sales. This occurs everywhere.
Go to ShenZhen, if he's really wants to show the world how empty China's new buildings are, in minute scope.
Do not worry just print up a couple trillion give it to the chinese banks to get rid of toxic loans. Then go get the building boom going again. Make the Chinese tax payer cover the printed up money and your in like Flin. Start producing cheap goods and sell sell sell.
If the Chinese doesn't know how to develop suburbans and facilities, you know it is the Shanghai gang playing their cards, they take profits and then runaway learning from the Jewish gang else where. Then the other people will follow suite. Resource ownerships changing hands in high frequency with bankers cover up. This new Jewish philosophers will pour over the world, draining their own local resource to drain other people's local resources. People, give yourselves leisure to investigate this.
If the Chinese doesn't know how to develop suburbans and facilities, you know it is the Shanghai gang playing their cards, they take profits and then runaway learning from the Jewish gang else where. Then the other people will follow suite. Resource ownerships changing hands in high frequency with bankers cover up. This new Jewish philosophers will pour over the world, draining their own local resource to drain other people's local resources. People, give yourselves leisure to investigate this.
I agree with much of what Hugh says, but on that one i think he got it completely wrong. Especially in an over populated country like china. The property slap is only temperary. too many buildings, at high prices and chasing little money. when prices level off, buildings will get occupied then it will be up, up, and away again. but this time at a steady rate to match the right demand. Housing is a need, not a want. Unlike the tech bubble that was built on alot of assumptions of want.
Property buble in developing countries like China and India are fundamentally different from property bubles in developed countries like France, Italy or Spain, simply because developing countries are still in the process of urbanization and more buildings are needed in the long run. These buildings might be empty right now, but remember, there are still over 600 million ppl in China hoping/waiting to move to the cities for much higher quality of life. That's not the case in Europe or US.
HotYoungMaster 2 months ago
I remember when they were building the five big airports in the cities around the pearl delta in the late 1990s, in the same cities where these empty buildings are in Guangzhou, Dongguan, Shenzhen, etc, everybody criticized these city officals and thought it was going to be a huge waste. By the time they barely finished building all 5 airports, they found it was not enough to meet the demand for air traffic in the region, because the delta has 100 million residents.
HotYoungMaster 2 months ago
What are the names of these skyscrapers and the cities that they reside in? I know the first black cylindrical one is in guangzhou, but i had no idea it was, or still is, empty. Amazing! Wish this guy would do a follow up.
xdizzycowx 2 months ago
This guy has made an absolute killing in recent months based on this bet.
EyeHeartElliottSmith 3 months ago
@EyeHeartElliottSmith from what i read, he made 40% up by August this year.
lmubruin 3 months ago
@lmubruin His fund was up by nearly 40% in the year to August, but that is not to say he made 40% profit. I don't know how much his fund was when it started or how did it perform last year, but according to the same Economist article which reported his 40% gain this year, "without a sustained fall in asset prices, it is unclear he will make back much more than he spent". I guess that means his fund was losing a lot of money before this year. This 40% gain only made it close to break-even.
HotYoungMaster 2 months ago
How much is rent for a typical 30-50 employee office space?
PhantomAct 3 months ago
The more humanity advances, the more it is degraded.
beastinblack 4 months ago
To me,Japan continues to be Asia's largest economy regardless the media may say.striking high-rises and skyscrapers? Japan also has that.there are still an awful lot of poverty in the remotest area of China.I like China,but I still think Japan is a lot greatest than China.
nostalgiamelancolia1 4 months ago
Comment removed
beastinblack 4 months ago
@nostalgiamelancolia1 The Japs are hardy people, their geographical shortcomings (earthwquakes, tsunami etc) and their WW2 wipe out have made them tough little cookies.
beastinblack 4 months ago
I was just in Dongguan to see the world's largest mall and 95%+ of it is empty.
EconCat88 6 months ago
empty, entire cities in china are empty, the largest mall there is completely empty, the national stadium in beijing, barely used after the olympics, paint peeling of, china is the world´s largest ponzi scheme, internal consumption? in 2009&2010 china claimed economic growth data that simply did not correspond to reality. they are cooking the books,
CHUUMPASS 7 months ago 2
scottish/irish lionel messi.
kaplonkmoo 9 months ago
Check out on youtube-(CHINA-64 million Vacant Condos)
m00se321 9 months ago
Reminds me of Thailand 1996
PrinceLeopold 9 months ago
This has been flagged as spam show
China's economic "miracle" is based on poisonous toys, fake poisonous eggs, political/religious dissenter slave labor, fake poisonous grapes, fake poisonous infant formula (which killed many babies), copyright violation black market d.v.d.s & c.d.s, patent violation car designs, fake designer clothes-shoes & handbags, violating international weapons control agreements, human trafficking, currency manipulation & poisonous tooth paste.
ArmenOfTheNorth 10 months ago
Thank you
blackswanflea 11 months ago
It is not a question of if but of when the Chinese economy going to crash and will grow very slow for years
chrisblueworld 11 months ago
Now it seems that China is the world's second-largest economy. We've been told for some time that this is a global recession. Looking more like a western recession ie the free market system has failed.Not sure whether China is borrowing billions for these building - they seem to have spare capital coming out of their ears. They are probably just planning ahead for when all our corporations relocate over there.
nowthatsinteresting1 11 months ago
@nowthatsinteresting1 They don't have 'spare capital' , they have 'cheap labour'. Those buildings could not be built if the wages were truly based on market forces. The empty buildings almost prove that. The other piece is that the 'capital' is being printed out of thin air. The banks can lend as much as they want willy nilly.
jamster8888 11 months ago
The Lees trying to keep up with the Joneses...
harmageden 11 months ago
makes me think about detroit´s abandoned skyskrapers...so short Nippon Steel and JFE Hldgs? :-)
ddt77ta 11 months ago
the chinese state, with the way they are used to thinking and doing things, probably preferred to build everything all at once, then lure in tenants. maybe an inneficient, risky plan but its probably the best they could do. Russia has done many things that dont make sense either, its the communist habit.
sure is quiet in that "central business district"......
sfsTrader 1 year ago 4
When the worldwide program of chemtrailing moves from soft-kill boron and aluminum to plutonium waste/biological cancer super viruses- tenancy wont be a problem- the living will envy the dead.
hozayamz 1 year ago
great economy
asjh100 1 year ago
What in the name of God are you wearing Hugh? I would call fashion 999 immediately.
rure1968 1 year ago
@rure1968 here i am!! the fashion police!!
ganteng133 1 year ago
in fact, China absorbs the capital and the technology from foreign countries,
absorbs manpower from a domestic poorest segment of the population,
and, destroys overseas industry by exporting the commodity to foreign countries cheaply in the background of the former rate suppressed to low unjustified, and has deprived of employment.
china is rich and fascinating market for all country.
but, if we depend on chinese economy ''too far'', we gonna face a crisis.
anoareha 1 year ago
It's the 'New River Pearl City' in Guangzhou at the beginning.
MicroShock 1 year ago
So, I guess he's not buying into the whole China economy thing then.
aidanqn 1 year ago
@aidanqn from what i been researching is since consumption is still slowing down many chinese are loosing jobs and factories are closing. To boost growth the chinese are building things there is no demand for. Many empty buildings everywhere that are being built just to keep people employed. Cars are being built when there is no demand. The money will run out and get ready for the chinese crash. That already happened to the russians.
TheCashistrash 1 year ago
The Greater Leap Forward
chestnutstime 1 year ago
Geez, if you really want to know whether Chinese bubbles exist, check out the bubble mentality of the pro-Chinese commenters here: "the US needs socialism," "buildings will get occupied then it will be up, up, and away again," "China had the biggest GDP 18 of the last 20 centuries." The saber-rattling on territory issues, defending past leaders against perceived foreign slights and anti-Semitism merely distract people from real issues. I've seen this story play out in Japan. It's not pretty.
bryleemck 1 year ago
Heh, dragondescent, you are full of it. Even for a nationalist, your arguments are flimsy. The GDP numbers for "18 of the past 20 centuries" are based on...nothing, and are simply a quip by a former governor of Hong Kong. Even by the 1400s, China was already lagging behind Europe in any developmental or geopolitical category that mattered. China is not a superpower and it will have its crashes like every other country that has ever adhered to capitalism. (N.B.: not "capitolism.")
meikouz 1 year ago
China has ambition and a large population thats what makes a super power these days. The USA has the biggest population in the developed world hence their power.
warriorprince1010 1 year ago
@dragondescent dont you know a term called "self determination" ?? we see ourself as taiwanese rather than chinese.... its our choice
dm455042 1 year ago
FUCK DEMOCRACY ! Their I said it . Why say it ? I`ll explain simpley - My country and other western countries could never match the genius Chinese economy , our governments and Bankers exploit us and spend the money on things like property and making their lives better , China however is very conservative and spends all money properly among the population and does not get itself into economic meltdown . Really we must learn .
HIURNAMEISTOMMY 1 year ago
China is going downnnnnnnn!!! you chinos better be ready when your RE/construction economy bubble bursts. and it will.
then go the reserves..then goes the rmb...and all you will have left is a made in chinosville hendful of rubber dogshit.
legion0101 1 year ago
@legion0101 , funny how people like you are always wishing and hoping for China to go down. Let me tell you, a recession in China isn't gonna help anyone- not you, notme. It will screw the world over, in much the same way that a US recession has screwed everyone.
Allawahguy 1 year ago
China's GDP will takeover Japan pretty soon. Japan will be no longer 2nd in world strong economy but China will be. Very soon. Watch!!!
It's been proven that China & India already took over mutual fund markets(and of course USA is still #1) from Japan who used to be #2. Japan is not #2 any longer. China & India #2 & #3.
Sarah01181225 1 year ago
@Sarah01181225 and pass gdp\capita in a millenium. lol
ConstantC4 1 year ago
Freedom For Tibet. Don't buy mainland Chinese goods. Taiwan is all that is left of the real China.
mrdiscus66 1 year ago
@mrdiscus66
Asshole, Taiwan does not belong to China! We are Taiwan.
ycformosa 1 year ago
@ycformosa I didn't say it did. China should belong to Taiwan as Taiwan has the legitimate Chinese government and not that corrupt communist scum in Beijing.
mrdiscus66 1 year ago
@mrdiscus66 lets not get into who belongs to who.
we all know north and south america belong to native americans australia and new zealand belong to aboriginals and israel shouldn't exist. so dont even go there girlfriend.
ChairmanYin 1 year ago
@mrdiscus66 Taiwanese are just armed rebels, a group of Dalits, but also to the leading China?
Only a group of pigs and dogs you.
We know who is the legitimate Chinese government! !
TWpig 1 year ago
@mrdiscus66
Taiwan has has rampant corruption and government coercion as well.
chestnutstime 1 year ago
@chestnutstime Most governments are corrupt up to a point. But they don't go around murdering millions of their own people. The Chinese gov. sucks big time and because of that western countries should boycott China and recognise Taiwanese independence. China should be isolated until it gets out of Tibet,stops supporting North Korea and gets some form of democratic government. The West doesn't need the shit China makes and more to the point can't even afford it nowadays.
mrdiscus66 1 year ago
@mrdiscus66
Muahahahahaha
Isolate China? Just keep on dreaming, dumbass. The US owes China trillions of dollars. Isolating China is like killing themselves. Taiwan and Tibet will always be a part of China no matter it is democratic or dictatorship. Only shithead believe Tibet will get independent.
maomao667 1 year ago
@maomao667 Without massive exports China would go back to the Dark Ages. Whilst everyone else would be rid of the shit you make. Chinese communist government sucks on so many levels it should be isolated. Then they could concentrate on learning some manners or perhaps murdering more Tibetan monks. If Taiwan is part of China how come they've got armed forces that are good enough to stop you thugs invading them?
.
mrdiscus66 1 year ago
@mrdiscus66
Your laughable comment just show how dumb and brainless you are. Not only China's economy depends on massive exports, but also US and other European countries. China's products can also be sold well in Africa, if the west stop importing it. Chinese communist government is very effeicent after the open policy was taken. It makes China economic miracle real. And I don't think any democracy system can run a country with 1.4 billion people very well.
maomao667 1 year ago
@mrdiscus66
Because democracy doesn't solve any problem. Got that? Just look at the democracy in India. I think it actually gives real democracy a bad name, doesn't it? As for the Taiwan, those weapons are bought by the pathetic seperatists who want to get independent. But unfortunately, even the US government and UN admit Taiwan is a part of China. Is that clear? Dumbass?
maomao667 1 year ago
@maomao667 UR the dumbass communist stooge. Taiwan has it's own government and better quality armed forces. China is like Hitler's Germany. First they want Tibet then H.Kong then Taiwan. Next it'll be Japan. You greedy bastards won't stop until you've started the Third World War and no-one will win that. Incidentally Mao probably killed as many people as Hitler and most of them were Chinese.
mrdiscus66 1 year ago
@mrdiscus66
You fucking stupid western propoganda dog. Why would China want to take Japan? Tibet, Hong Kong and Taiwan belongs to China since ancient time. You fucking evil western cockroach has never stop trying spliting up China. Who is the greedy bastard now? It is you who started industrial revolution and clonizing other countries. If it's a world war 3, then you are the one that started it. So fuck you piece of shit !!!
maomao667 1 year ago
@maomao667 You are a typical aggressive, bad-mannered Chinese communist. If Tibet belonged to China why did they have to invade it in 1950's. Half of Hong Kong should have remained British forever cos your government signed a treaty to this end. The Hong Kong people didn't want to be part of China so why should the commy thugs take control of it? If China is so good how come most of the people will do anything to escape? Face it it's just one big dirty slave labour camp.
mrdiscus66 1 year ago
@mrdiscus66
It is true that China is ruled by the communist dictatorship, but the sitiuation is getting much better since the CCP took the open policy. China's freedom and human rights is not as bad as Mao's era. HongKong is a part of China, because not only Chinese government, but also the Chinese people can not allow their land taken by foreign intruders.
maomao667 1 year ago
@mrdiscus66
Tibet was invaded in the 1950's? Stop spreading shit that made by the fucking US government and CIA!!! Dalai lama is just a pathetic CIA agent. He used to be the biggest slave owner and religious dictator in Tibet. CIA had never stopped supplying arms to those extreme seperatists. Just like what they did in Iraq, and Afghanistan. They always utilize freedom and democracy as weapon to distablize other countries.China may be a big labour camp, but USA is the biggest trouble maker!!!
maomao667 1 year ago
@mrdiscus66
Plus, Taiwan has better quality armed forces? Muahahahahahahahahahaha
Your ridiculous comment crack me up. Taiwan always buy second-had weapons from US. That's all bullshit to China. China doesn't have to send force to Taiwan. Because China has thousands of lang range missiles. So use your fucking brain before you comment. Muahahahahahahahahahahaha
maomao667 1 year ago
@mrdiscus66 Yes and China's outbound investment is expected to be equal with the flow of FDI into China in 2015. Investment is a key driver of every economy but China is focusing on Domestic consumption right now and not exports.
ManjuSu 1 year ago
@mrdiscus66 8th century Tibet into China. At that time European countries have not formed.
Taiwan is Chinese territory in the year 2000, and now the rebels, the government should save the people!
TWpig 1 year ago
@TWpig tibet didn't become part of china until around 4 century......
taiwan have never belong to the communist china. unless, one day they actually conquer taiwan somehow
dm455042 1 year ago
@dm455042 Taiwan is not China, is it you? What you are bitch! Get out!
TWpig 1 year ago
Half a billion to pay for that buildind and you think thats scary...Go check out Americas defecit, who are they borrowing from?
conor34040 1 year ago
looks can be deceiving
Natedawg422 1 year ago
China needs to be slapped in the face and the usa dont have the balls to do it .. wow im embaresed to be an american. Will we let them take over the world? put us all at risk of there influence
lfmiddleearth 1 year ago
Anyway, China is on her way.
DARKsoul860807 1 year ago
This has been flagged as spam show
Beware Asian American people or the Banana Chinese, America migth restate the anti chinese exclusion act again; Rocky Spring or Clove Portland. MOVE YOUR MONEY OUT OF AMERICA!!! The American dont like you being here!!!! Fuck Hollywood, Cnn, and BBC News full of lie... tell only half of the story
RUFULLOFSHIT 1 year ago
Yes but it's worse in China cos most of the crime is state sponsored ie. the government, the same government that has been murdering since 1949. Think about what you buy and where it was made. Buy from EU if that's where you,re from or US. Buying Taiwanese is a boost for their stand against the CCP.
Buy Japanese if you're after quality, problem is a lot of their stuff is made in China now and quality control has suffered tremendously.
mrdiscus66 1 year ago
@mrdiscus66 good luck paying 10x as much for same stuff... you think we chinese even care if you buy our stuff or not??? ... dont buy it.. then we have more for our self.... stupid igorant shit
ulleule 1 year ago
LOW TALKER LOW TALKER LOW TALKER LOW TALKER LOW TALKER LOW TALKER LOW TALKER LOW TALKER LOW TALKER LOW TALKER LOW TALKER LOW TALKER LOW TALKER LOW TALKER LOW TALKER
I had to turn this all the way up and then could still barely hear him.
bdoowg 1 year ago
Falun Dafa Hao
anony862 1 year ago
Taiwan is all that is left of the real China after the Maoist thugs took over the mainland. The Chinese communist party is even a disgrace to the ideals of communism and has murdered more of it's own people than Stalin and Pol Pot combined.
Don't buy mainland Chinese made goods or you are supporting a basically fascist totalitarian regime.
mrdiscus66 1 year ago
We will do the same with US and Russian products because these countries are controled by organised crime.
I wish we cannot buy foreign goods and rely on local suppliers: everyone would have a job and that would reduce drastically pollution.
biglova 1 year ago
didojj1 China invaded Tibet in 1956. Since then it has systematically raped the country and populated(polluted) it with Han Chinese. The Chinese communist government has killed more of it's own people than were killed in total in the Second World War. Learn some manners and then learn some history, and I don't mean the shit written in your little red books.
mrdiscus66 1 year ago
I still wouldnt buy shit made in china even if it was good.
GameRemix 1 year ago
It doen't favour the West in the long-term. When there are no jobs because everything is made in China. The ridiculous debt countries such as US, Spain and UK have means what's happening now is not sustainable. Also I can't think of any Chinese goods that are not cheap and nasty. Even stuff made by Jap controlled factories in China isn't as good as the genuine Jap stuff. Also why buy Chinese and support a brutal dictatorship?
mrdiscus66 1 year ago
@mrdiscus66
Democarcy is good.
But the us government and the fucking west is utilizing democracy as a weapon and political tool to split and weaken China. China has right to choose her own way. US and the fucking west should stop criticising China, because they are not perfect either.
maomao667 1 year ago
This has been flagged as spam show
Watch my video.
It's about earth shift. Earth shift: One huge continent became 2 continents, then 5 (or 6) and then?
Did China and its surround exist when the continents were 2?
fridaysabtu 1 year ago
The West shouldn't even trade with China until it gets a democratic government, gets out of Tibet and recognizes Taiwan as an independent country. They can't make anything that is any good anyway and all their cheap exports are the product of virtual slave labour.
mrdiscus66 1 year ago
Until it gets a Democratic government is exacly what the West wants from China, it will be divided and weak. And Europe will always import products from China, if it weren't for China, the European economy would be far worse right now. And China doesn't export, cheap, low quality products anymore.
Deuszxable 1 year ago
@mrdiscus66
No matter China is a country of dictatorship or democracy. Taiwan and tibet will always be a part of China.
maomao667 1 year ago
mrdiscus66 , why don't you stupid whites liberate yourselves from the control of smart jews first , then come to save we "poor" chinese ,tibetians, etc ? china's land will always belong to chinese ppl , get it ? don't mess with our ppl.
didojj1 1 year ago
Why should they recognize Taiwan? Taiwan itself claims all of China, as well as all of Mongolia and part of Russia.
Volk2108 1 year ago
This economy is going to crash fucking hard...growing way too fast.
lmaozedong99 2 years ago
Their economy is not a bubble based speculative economy of Japan in the 80s or ours of 90s. Their growth is centered on infrastructure, real estate, exports and transition of labour. They also have a strong central bank that just cut lending to avoid speculation. It is very doubtful that their economy will crash like ours, that's unless they make their markets lassez-faire which is also doubtful.
Powa2 2 years ago
BIENVENIDO A CHINA !
中国欢迎您
alex18longma 2 years ago
Well, everyone want to see the fall of house price in China, especially poor people who want buy a new house.
But, everyone hope it just normal house price fallen, not some thing like in Japan and US, which whole economy affected.
celebriton1 2 years ago
his coat doesn't fit
FizFashizzle 2 years ago
yes and the residential high rises are about 90% empty, and unfinished. the question is: is there REALLY an emerging chinese middle class to compensate or replace the american consumer, and if so, what will happen to china's manufacturing base? the high percentage of investor owned units means in a true real estate market (a for profit market) rents would be collapsed to reflect a true market. not the case; rents in china are subsidized, just like employment.
GovWillKillU 2 years ago
ya 90% empty at 2pm when everyone is at work.... dont buy into this bullshit. its juts like the videos where ppl go to malls before they open and say how nobody is shopping
drshields1988 2 years ago
no i was there. they are empty. its 'non productive' production; same as the employment situation there; employees standing around; 10 per customer. this is government controlled economics, and it does not reflect a REAL, for profit marketplace.
GovWillKillU 2 years ago
The way I see it he is in Guangzhou which is China's major Southern manufacturing base. Almost all Chinese manufactured exports flow through or are made in Guangzhou. So I think this video is misleading, because Guangzhou is heavily dependent on export. However if you look at cities such as Chongqing and other cities in the interior and to the North of China and some on the coast, like Shanghai, they are still booming. If anything China has proven that it is robust enough to weather the crisis.
lendmeurears 2 years ago
all i know is there are significant numbers of empty high rise commercial and residential buildings like this in Beijing and Tian Jin, Tian Jin was way overbuilt in 2005. those cities you mentoned i dont know about; im sure your right about shanghai / hong kong.
GovWillKillU 2 years ago
You should read into Chongqing, many officials hope it will be China's Chicago. Because just like Chicago did in the early 20th century, it it hoped it will shift China's economic boom from the coast to the interior. The city is booming, but it is based almost entirely on domestic demand because it is so far into China's hinterland. One major reason China has been so fortunate in the economic crisis is because much of the export meant for Western markets has been redirected to cities like this.
lendmeurears 2 years ago 4
Allow me to make an assumption that you do not really understand the Chinese economy. If you know how to and how much money you can make, you wouldn't be surprised.
Btw not everyone borrows to build in China. They have enough cash flow to burn.
vison99 2 years ago
but that is a major disfunction in any economy. it is also a harbinger of a bubble. in a real, for profit economy, there is no "money to burn". this concept, although a factor in the ultra rich, is not among the real working classes that economies ultimately depend upon..
you refer to speculation, not sound fundamentals.
GovWillKillU 2 years ago
Thank you for your response as I never expected any. That was also my first time to join any discussion on YouTube.
Personally I came from China, then I spent the last 8 out of 22 years in a western country.
I have read a whole book about Chinese property bubble early this year. There is certainly 'bubble' but that bubble is not going to blow in most of the cities.
In fact, the bubble in residential price is mostly pushed up by working class. Bcoz demand is so huge, then speculators came in.
vison99 2 years ago
wow.... speechless you need help
therealbuba 2 years ago
Waste of 5 minutes, Hendry seems to be trying to create an image of mild eccentricity, get a suit that fits first.
The Eclectica funds are not stand outs from the crowd
shaun270393 2 years ago
Here is GuangZhou, capital of GuangDong province. China's 4th largest city
rjlyltclyl 2 years ago 3
This video is humorous... Absolutely no visual confirmation as to what he is saying. I could walk over to my downtown skyscrapers on any given sunday and make them look deserted too.
(Sure, there will be traffic in the streets, but everything else would look empty)
Laughable....
This gives me an idea for a parody......
Tamryn69 2 years ago
Well, as a hedge fund manager you would think he would know which retail investors are being lead up the garden path
DavidAKZ 2 years ago
The sound quality on this video in not very good......but I think that he says that the new buildings are empty,and of soviet quality?
pepsiwatersugar 2 years ago
Yeah, it never fails to amaze me how so few posters here seem to realize the need for wireless lapel mics combined with a camera with an external mic input. They aren't that expensive or physically obvious. And money would be no object for this guy even if that hardware was extremely expensive which it is not.
EmmanuelGoldstein198 2 years ago
Check out the real story about currency devaluation - globaleconomicanalysis d0h blogspot d0h c0m - China is busy ramping up production for consumers that don't exist: Not in the US, not in the EU, and not in China (not yet)
TonyUnplugged 2 years ago
Listen the reality is this ..... we're doomed
Dandaniels1978 2 years ago
Wish the audio was better, only caught about half of what Hugh Hendry was saying. Thanks for posting this anyway.
jiggystardust 2 years ago
This is just a video of 1 person.....and has no prove of what the real reasons. I can take the same identical video, edit the words to read like China is on an unending boom and are you folks out there suppose to believe China in on a tear?
I believe in actual numbers. Not heresay by
djiangchan 2 years ago
Lol. Except, the buildings are still empty. Nice logic, genius.
Jorient405 2 years ago
Yes....I am in commercial real estate. And the vacancies are up at its highest ever...and look at the US stock market...crazy wall street doing their usual thing......scamming all day long. Karma will catch up to each and every one of them
djiangchan 2 years ago
Those buildings don't look empty to me...
dongshanzaiqi 2 years ago
They are office buildings and it is during peak business hours....genius.
Jorient405 2 years ago
Same like in US. boat loads of empty building like China and the difference is, all are quite about it...hoping it will fade away. I say crash the CMBS market for correction now sooner than later.
djiangchan 2 years ago
Seems like a tragedy for China to have so many beautiful empty buildings while most of their population lives in such poverty.
brad3378 2 years ago
hi, does this video accept comments?
morfeeene 2 years ago
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thepaulphoenix 2 years ago
Once all that money that went into stock market speculation gets scared that it will get beaten down again, world markets should start to come apart at a pace faster than last time around. Remember that quaint saying, "Fool me once, shame on you. Fool me twice, shame on me?"
Tuza 2 years ago
The first building (the first to be built out of a pair of twins) is Guanzhou East tower, and sure it's empty. It isn't even finished -_-. The second is Minisheg bank building, with one major tenent. Guess who?
Sure, China is have growing pains, and maybe it won't, maybe it will surpass the US and the EU as an economic power. Lets not be sinophobic about it though.
KingGodog 2 years ago
KingGodog: "Lets not be sinophobic about it though."
-The best answer I've seen so far. I, too, can't help but notice this sinophobia going on.
If it's not about governments, it's about military, if not, then it's about economy...
It's almost as if they're happy about China's economic problems (or wish for it) while not even knowing the consequences of how it will affect their own country.
Ch1neseDrag0n 2 years ago
I thought it looked like Guangzhou, I since I saw the CITIC Plaza in the haze. Well, good thing he didn't call that empty.
xingfenzhen 2 years ago
Oh, Hugh. That suit is ridonkulous. And that bizarre waterproof blazer-thing makes you look, from a distance, as if you are blessed by a mullet.
But you are not! Discard the mullet-making apparatus.
Cute accent, though. Scottish ones are always the best.
drabheathen 2 years ago
Ok, here is the thing. 25 years ago when China was booming, Westerners who came to China laughed at China's high rise buildings and openly said "I feel sorry for the Chinese, who will move in these buildings! They are all empty! The whole thing will burst".
And what happened? China boomed and those idiots have been proven wrong. Not only were they wrong but they missed out on the biggest boom of the last century.
Elbottoo 2 years ago
Er, that tower in Wuhan HAS a tenant: The Minsheng Bank. Actually that's the Minsheng Bank Building. It's empty because they are still doing the interiors, then the bank will move in. If you want to spread sinophobic propaganda at least you should try to be more convincing.
z0rga 2 years ago 2
I agree partly with this guy on the video. The empty buildings sure looks troublesome and are red flags for sure. But it doesnt tell the complete story as all it signals, is a slower growth or slowdown. We know China has been growing slower due to the economic recession. So this is not news.
Also, most of the buildings are financed by and for foreign companies. If other countries are having cash problems, investments in China will of course slow down.
The big question is, how serious is this.
Elbottoo 2 years ago
The guy could have been arrested and jailed for espionage if he got noticed, he couldn't exactly have been doing the loud and obvious thing here. Of course he could have shot the video and done some voice over back in a safe nation.
originalrumplesnitz 2 years ago
Youre a retard. Nobody is going to arrest him for saying the buildings are empty. They were just amateurs, thats why the sound is almost not there.
People shoot video in China all the time, you retard. None of them disappeared.
On Youtube alone are thousands of videos with "Look at China this and that". Your response proves how sad you people are and how uninformed you are.
Elbottoo 2 years ago
Since I'm not the one hurling insults here, I'll just allow folks who might wander across this exchange to consider the sources.
originalrumplesnitz 2 years ago
What the hell are you wearing, man?
jamiedore 2 years ago 2
Would be interesting but audio is really bad - can hardly hear the commentary.
beaubluenyc 2 years ago
If you build it they will come, or maybe not.
ponzi6 2 years ago
this is rubbish
LaSarte05 2 years ago
I attended a Texas land conference in 2007 in which one of the particpants reported that a group of CCIM's that toured China over two years ago indicated there were numerous 'see through' high rise buildings in China then. So the trend continues.
One can see why the ChiComs are buying UST's (even while whining about the yields and our creditworthiness). The UST's at 2-5 percent are better than the returns being generated by the loans on empty o.b.'s.
sgtredbluered 2 years ago
China's exponential economic expansion is almost exclusively confined to coastal areas, and is therefore capped. The rest of the country is underdeveloped, primitive and exists in squalor. Weak. The days of the China Miracle are numbered. Bubble.
libhater1 2 years ago
Actually, this video might have kept my interest if I could hear what the guy was saying! A hedge fund manager can't get better recording equip????
gbarr7 2 years ago
My guess is they were probably were trying to film without being arrested. The chinese govt does not want hedge fund mgrs exposing this.
Franzko787 2 years ago
Your guess is ridiculous and quite simple stupid. Your response proves how uneducated and uninformed you are about China. You actually thought that they werent allowed to shoot.
They shot it mister. And it goes right against your believes. They werent arrested and didnt disappear. Idiot.
The lousy sound is due to amateurism. Get your frikkin facts straight.
Elbottoo 2 years ago
From Neil Mc Dermott
China brought in a law in the 70s that limited families to one child one family Surely by now the population is aging and anyone under 30 is an only child which must lead to weak Nation or perhaps a Bully Nation what are your obs from your visit?
Thanks so much for your video it proves the old Adage a picture is worth a thousand words
neildublin1 2 years ago
Comment removed
blunderbus21 2 years ago
you can bet the smart money will be shorting the bust at the right time.. problem is that China cooks the books like nobody else
TwoSet 2 years ago
From Tom Dyson, an investment newsletter writer:
The Chinese government's inflation and easy-money policies have led developers to build more office space than Guangzhou needs.
There are now too many factories, too many buildings, and too much infrastructure relative to demand all over China...
Instead of letting the market liquidate these mistakes when the crisis struck, the Chinese government decided to make it even worse.
ryanskapa 2 years ago
Who is this biased guy trying to fool? Us? Or just himself? China experiences economic growth year after year. Why? Because China has industry and exports its produce, mostly to the West. While we, in the West, pretend to make money through banking and real estate. And if he likes staring and vacant properties so much, he will find plenty to gaze at in Europe and America. Also, he might find something called a 'recession' that is happening over here...but it is not happening in China
DavyTom71 2 years ago
Actually Davey Hendrys' Fund made over 35% last year, during one of the worst markets in decades.
China experiences economic growth by fixing its figures, anyone who believes everything a dictatorship like China reports is themselves a fool. China does ideed exprt to the west...lending the west the money to buy those exports. Who's the bigger fool, I don't know. As Hugh rightly points out what will happen when Chinas reserves run out, you can't "stimulate" forever.
timhinchliff 2 years ago 2
If China lied about their growth, then where did all their money come from? 2.2 Trillion, thats with a T and TWELVE ZERO'S!
Was it magic? Did they waived their magic wands? Lmao idiot.
Elbottoo 2 years ago
I think you misunderstand me. China has experienced huge growth, just perhaps not as huge as the authourities would have you believe. You need to develop a bit of lateral thinking Elbotto rather then simply counting how many 0's a trillion has and acting like that is somehow relevant, while missing the point. What is that 2.2 trillion measured in? US dollars. How much of those reserves are in US bonds? Over a trillion. And what are Bernanke / Obama doing to the dollar and the US debt pile?
timhinchliff 2 years ago
How can China's reserves run out? We give them money to buy their produce. We give them more money to pay back the money they have loaned us. And the Chinese bank much of the money they make. And, sorry to say this, but plenty of Western governments fix their figures too. One of the reasons for the recession is that governments, bankers and all the other dopey 'experts' kidded themselves that everything was fine, when inflation and borrowing was getting out of control
DavyTom71 2 years ago
Again you seem to miss an important point. Chinas reserves are largely in dollars and US bonds. US bonds are a promise to pay someone US dollars at some time in the future. The US dollar is a fiat currency, it is not backed by anything but a promise. The Fed is destroying the value of the dollar by printing them like crazy. Its not Chinas reserves that are the problem it is the fact that they are kept in a currency that can be debased at will. China is in as precarious a position as the US.
timhinchliff 2 years ago
Also some lessons from history.
There has not ever been a successfull fiat currency, it has been tried numerous times and has failed every time.
When Nixon was criticised for going off the gold standard his treasury secretary said "our currency your problem"
If someone owes you enough money its your problem as much as theirs, this is a very old banking addage, (is a trillion dollars owed enough for you?)
Look at Zimbabwe or the Weimar republic. You think their creditors got paid?
timhinchliff 2 years ago
I will have to bow to your knowledge regarding things like bearer bonds. But if things sound iffy for China, it really sounds grim for the US. A flat currency? Printing money? It sounds like it is going to be worse for the US. At least China can rely on exports. And I have doubts that China and many other countries will continue trading in American dollars in the near future. The euro is looking more and more attractive as a trading currency
DavyTom71 2 years ago
I totally agree Davy I would much rather be on Chinas side of the equation then then US side. But this is the problem with the whole green shoots nonsense. None of the problems that caused the crisis have been solved just put off for further down the road. There is massive imbalance in the system and saving banks like Goldman so they can get back into the speculating trough has achieved nothing. Obama is just more of the same and has proved that by reappointing Bernanke was asleep at the wheel.
timhinchliff 2 years ago 2
Also I wouldn't put much faith in the euro the European banks just haven't faced up to their crisis yet but it will come, soon. Banks like Deutsche Bank are 2 or 3 times more leveraged then the American average and have loans to countries like Hungary that have collapsed. Watch out for Austria in particular, its banks have loaned more then its GDP to eastern European countries mainly. Gold is the only reliable currency. You cannot print it, it is the only way to keep central banks honest.
timhinchliff 2 years ago
This has been flagged as spam show
@timhinchliff
YEA! CHINA IS A FORAIN TRADE BASED SUPERPOWER!
WITHOUT FORAIN TRADE CHINESE POWER HALF VANISHED!
HA HA THAT'S THE USA,RUSSIA,INDIA FACE ABLE POWER OF CHINA ?
souro19 1 year ago
China is a communist country that only gives it's citizens a little capitalism, that's it, the people have nothing to believe in but a little capitalism. If you take that away, you will have civil unrest. The Chinese govt has even admitted that they need 8% annual growth in order to prevent civil unrest. Right now they are achieving a little under 8% due to a China Stimulus Pkg, it's fail too like the US Stimulus Pkg and then the Chinese will revolt.
rayme4raw 2 years ago
rayme4raw
-How is that a fail? China's 7.9% growth of Q2 2009 has gotten many economists surprised. They didn't even expect China to achieve that. The US stimulus on the other hand is more, well, you know...
Seriously, you're just reflecting your own insecurities of your own country's economy. Maybe you should gear up, get your rifle, and revolt lol!
Stop reading biased "predictions" who's authors are made to eat their own words later on.
..Even capitalist USA needs socialism nowadays.
Ch1neseDrag0n 2 years ago
Eww, the USA is not a capitalist country and has not been for more than 3 decades. We have been a mix of capitalism, socialism and fascism. It's not the capitalist part of the economy that is failing, it's the socialist and fascist parts of the economy that is failing. The propaganda spin was to blame capitalism. Start looking at how many monopolies exist today in the USA and you will see the failure of corporatism (fascism) that is widespread here. The cure is not more of the same.
rayme4raw 2 years ago
Like I said, practice your rights of the 2nd Amendment, and go revolt......
While China enjoys reaching it's predicted decent growth rate :)
Ch1neseDrag0n 2 years ago
Really, who needs socialism, it's a proven failure. It fails because of basic human psychology. We are all different, and made to be that way. Socialism requires loss of economic liberty. Loss of economic liberty always, always leads to economic stagnation. This is just what it is, politics aside. You can't trump basic human nature.
Jorient405 2 years ago
Supposely the most controlled country is supporting the supposely most free country.
djiangchan 2 years ago
Every successful billionaire and a successful convienence store owner will say failure is the road to success. Funny logic, genius
djiangchan 2 years ago
Socialism seems to work in Scandinavian nations. Capitalist countries are becoming Socialist nowadays.
Ch1neseDrag0n 2 years ago
We are poor in scandinavia. It sucks. Pure communism.
martinbelmont 2 years ago
Really. Because in terms of the best places to live in the world, I think the Scandinavian nations really should all be on the top.
Not a lot of people, and not really poor.
Ch1neseDrag0n 2 years ago
For a city so huge, look at the activity around Hugh? A few peasants meandering about and the odd moped zipping by. If that was any other comparably sized city, the place would be a hive of activity.
The whole thing reminds me of the time when the Asian Tiger economies folded. They built skyscrapers in expectation of growth. They built factories in the expectation of Western demand. Despite stable growth of the West during 1997-1998, they still collapsed.
rpmeurope 2 years ago
I find this useful actually. Google "China's Hidden Debt Problem". I don't think he's just forwarding his own agenda by looking at a few empty buildings. China's debt to GDP ratio according to the Reuters article is more than three times what they originally reported. So China's problem are almost just as bad as the United States, relative to their debt load anyway.
kosai19 2 years ago 2
how will they heat buildings that tall without fossil fuels their going in the wrong direction .
look up peak oil watch the end of suburbia and listen to kunstler , do some research to where we are going
bearsagainstevil 2 years ago
your shit eyes only can see shit
cjcjcjcj1980 2 years ago 2
What's up with this guy ?
It does not fully reflect the real situation when this guy selects some obviously half completed buildings to proof , whatever agenda he has. When high growth economies slights down, occupancies might be over supplied. Developers may not want to complete the project in haste, or simply lack of fundings due to lagging sales. This occurs everywhere.
Go to ShenZhen, if he's really wants to show the world how empty China's new buildings are, in minute scope.
Lerclair 2 years ago
How about some volume?You can hardly hear what anyone is saying.
KLRJUNE 2 years ago
Do not worry just print up a couple trillion give it to the chinese banks to get rid of toxic loans. Then go get the building boom going again. Make the Chinese tax payer cover the printed up money and your in like Flin. Start producing cheap goods and sell sell sell.
jobedied 2 years ago
This has been flagged as spam show
If the Chinese doesn't know how to develop suburbans and facilities, you know it is the Shanghai gang playing their cards, they take profits and then runaway learning from the Jewish gang else where. Then the other people will follow suite. Resource ownerships changing hands in high frequency with bankers cover up. This new Jewish philosophers will pour over the world, draining their own local resource to drain other people's local resources. People, give yourselves leisure to investigate this.
beancube2008 2 years ago
If the Chinese doesn't know how to develop suburbans and facilities, you know it is the Shanghai gang playing their cards, they take profits and then runaway learning from the Jewish gang else where. Then the other people will follow suite. Resource ownerships changing hands in high frequency with bankers cover up. This new Jewish philosophers will pour over the world, draining their own local resource to drain other people's local resources. People, give yourselves leisure to investigate this.
beancube2008 2 years ago
I agree with much of what Hugh says, but on that one i think he got it completely wrong. Especially in an over populated country like china. The property slap is only temperary. too many buildings, at high prices and chasing little money. when prices level off, buildings will get occupied then it will be up, up, and away again. but this time at a steady rate to match the right demand. Housing is a need, not a want. Unlike the tech bubble that was built on alot of assumptions of want.
BOZOPUSSYCAT 2 years ago
Wow, I answered my own question!
madridisinSpain 2 years ago