One of Asia’s richest men, Li Ka-Shing, has been selling off his business empire’s China assets as the property bubble in that nation appears to have popped.

Li now appears to be focusing on Europe.

Here are links to a couple of Forbes articles:

China’s ‘Warren Buffet’ has just sold off his China assets

China property collapse has begun

Now, this should trigger alarm bells if earlier warnings had failed to cool down the speculation in the region. Aren’t we not a trifle worried about the ambitious high-end property development projects bubbling in the pot over here?

Thanks to blog visitors Don Anamalai and Eng Hock for the links.

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19 COMMENTS

  1. Both the articles are written by Gordon Chang. Go google him. He had been predicting the fall of China for 12 years already and he had been totally discredited. Forbes retained him because the US really need to read about the fall of China to make them feel good. It is the US who is in deep … right now.

  2. My friend in Johor told me that the developers there are now quite desperate as the interest from Mainland Chinese has dropped significantly after the MH370 and Singamata incidents. Some are now offering zero down payment (to attract the locals) and touting their new launch in shopping malls in JB!

  3. We in Pepper Estate can only hope that such a property market crash impacts on Penang’s foreign developers lust for money. This week a select few, it seems had the privilege of receiving a notice of eviction from Beverley Heights Property SDN. BDH, lawyers -Kevin and Company, the people who brought the land on 23 May 2012. Within it there was ‘no fair deal for Pepper Estate residents’ as touted in the NST in mid 2013.

  4. Only a moment ago read that the Communist Party of China will collapse. Putin was right that the US is the devil that will always prophesize the doom of their adversaries.

    • If Communist Party of China collapses, US property market, many of which are held by Chinese investors will go down the hellish road of mayhem.

      Obama jangan main main loh! He should weepingly accept the inevitable fact that Asia + India Economy Is Rising, Europe + America Debt-Ridden Economy Is On Downward Spiral. The only Ang Moh economy of exception is Australia.
      He & George Sorrowful should be gentlemen enough & not cause chaos in developing countries in the faux-holy name of ‘Open Society’.

      Btw, China already knew from where & by whom was the Bird Flu cocktail concocted.
      The same suspicious cause of disappearing MH370.
      Who says US SiSi-I-A cowboys can’t play the wayang kulit or dance the Diego Garcia latino tap dancing?

      • Obama now doing damage control after failed foreign policies in Middle East etc.

        Once China overtook USA as #1 economic power, the scenarion could well be different hence Obama now kickstart programs to engage Japan over the control of disputed islands & south china sea (oil aplenty there).

        Wonder what Najib has to trade with Obama ? How to implement Hudud Laws on American Muslims ???

      • Obama comes here to teach Jib how to dance to the tune of Diego Garcia Latino tap dancing. But with Chinese families howling at Malaysian Embassy in Beijing, will Jib have an “All Right, Good Night” sleep?
        “Delete this (embarrassing) move, back track to my SiSi IA’s” encrypted whisper from Air Force One cockpit to Jib.

      • “Let’s get more fishy (on MH370). No GST on US Salmon (good that you already done that before my visit). What about GM cars, GM (genetic modified) farm foods from Redneck farms?” further whispering from Obama into the ears of Jibby.
        More eavesdropping from Penang Kopitiam’s ceiling geckos.

  5. Timely warning indeed.
    Already we are seeing oversupply of highly-priced properties bought for speculation purpose but left unoccupied.
    Possibly price drop when bubble eventually burdt?

  6. many many are awaiting for bubble to burst not just property but also stock market.

    smart rich folks don’t invest when everything seem to have peaked and now await the moment to make the killings to wallop all crashed stocked/houses ! This is the cycle !

  7. William Pesek asked this on Bloomberg: “A Chinese bubble hiding in plain sight?”

    The eastern Chinese city of Fenghua is now a metaphor for housing froth. The collapse of a residential building there dovetails with worries China’s real estate bubble is about to explode and take the economy down with it. First-quarter figures were ugly enough, home sales having plunged 40 percent in Beijing, Shanghai, Guangzhou and Shenzhen. Trouble is, as this Quartz item argues, property values could be the next to fall over. That would have widespread and unpredictable repercussions for the world’s second-biggest economy and the shaky banking system that underpins it.

    http://www.bloombergview.com/articles/2014-04-04/pesek-on-asia-china-s-housing-bubble

  8. Truth is demand has slow down but the price continue to go up all due to the DAP LGE stupid policy. With houses below 400k under control, the developer are now free to built pigeon hole of soho unit at 650 -700 sq ft which cost from 450k up to 770k when previously 700 – 800 sq ft unit would have cost only 200 over k. Now I want to see how many poor can really afford to buy a house in Penang. And the idiot housing exco send the housing application forms to many of my good business friends who own more than 5 expensive houses. And the state govt continue to (mislead) that they are building 72k houses when in fact it is being sold for up to 200k. hahaha Since the implementation of the control, price of medium course house did not go down but instead go up by 17-25%. since the past 2 months. It was a blessing in disguise for many who continue to hold while the poor and middle income cry. An average house that was price at 200k over now sell from 300k up to 400k hahahah. A unit last December bought for 150k is being sold for 290k now. Who is to blame and many are saying thank you. To those who think the market will collapse dream on. Its only the high end that will collapse but I don`t think so and our is so very much cheaper due to the exchange rates and with that the local will continue to be deprived of housing because of this crazy for development CM

  9. Truth is the world cannot afford for a collapse in China property and China most of all. If it collapse, it also mean those who can’t afford property now, will lose their jobs and income.

    Actually NOW is the best time to pressure the govt to deliver on affordable housing for many. Since real estate have cooled and they are suppose to be less corruption, its the best time for the govt to develop affordable housing on a massive scale – rather than sell it to stimulate demand.

  10. If and when the Chinese bubble bursts then there is no question a lot of countries in Asia will follow. Therefore just pray and hope that it will not happen, it will trigger off the spark that will burst Malaysia’s housing bubble to begin with then other bubbles will follow like the stock markets and etc !

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