Behind the House Buying Frenzy.docVIP

[标签:标题] 2016 PAGE9 / NUMPAGES9 感谢观看本文谢谢 Behind the House Buying Frenzy Over the past few months， China has seen another boom in the real estate market―housing prices in big cities， such as Beijing， Shanghai and Shenzhen， spiked again， on top of an already-dangerous housing bubble. 中国论文网 /2/view-7319142.htm 　　Some attributed it to the$5 trillion rout in Chinese stock market.The steep correction in Chinese stock market triggers a negative wealth effect ， as said by Wendy Liu， head of China Equity Research at Nomura. 　　 Buying Frenzy in Big Cities 　　After getting burned by the bursting of China’s stock-market bubble， Liu Yihui is seeking salvation from the country’s latest investment mania： bigcity properties. 　　The 35-year-old civil engineer dumped his equity holdings after losing 40% last year， using the proceeds to buy a 5 million yuan apartment in Shenzhen. 　　Prices in the southern business hub have surged more than 50% over the past year， the fastest pace since at least 2011. 　　“People are a bit crazy in this market， but what can you do？” said Liu， who took on a mortgage to buy the apartment， an investment property that he’s renting out. “Stock returns were terrible， so I made up my mind to put my money in real estate.” 　　In an echo of the buying frenzy that propelled Chinese shares to unsustainable valuations last June， leveraged speculators are snapping up homes in top-tier cities in hopes that prices will keep surging. 　　The boom， fueled by monetary stimulus and a loosening of property curbs in February， shows how govern- ment efforts to revive the world’s second-largest economy risk fueling asset bubbles instead. 　　In Shanghai， lines of prospective buyers outside property agents’ offices clogged roads and forced police in the suburban Baoshan district to curb traffic as they sought to maintain order. 　　The buying frenzy prompted China’s official Xinhua News Agency to warn against “panic” buying， while Shanghai’s government issued a call f