“He said that his agent told him that the Chinese government is telling their people they should invest in Vancouver.”

ams at VREAA 8 Feb 2011 9:24am“I was at a birthday part on the weekend, one of the people is putting up his condo for sale because he wants to move to a different neighborhood. We got talking about real estate and he said that his agent told him that the Chinese government is telling their people they should invest in Vancouver and that investing in Vancouver is an authorized investment. I pushed back on that idea and said that China instructing their citizens was pretty far fetched.”

We’d agree, the idea that the Chinese government is encouraging citizens to buy up Vancouver is a bit of a leap. This is another interesting anecdote as a record of what locals are telling themselves as they peddle RE to one another, and as they overextend themselves further into RE.
Would the above “move to a different neighbourhood” involve an increased exposure to RE? It usually does, particularly when the protagonist is speaking that kind of bull. -vreaa

21 responses to ““He said that his agent told him that the Chinese government is telling their people they should invest in Vancouver.”

  1. Google “Chinese government telling citizens to buy gold silver”, you’ll see that the former often play patriarchs to the latter.
    “Instructing” is is a bit of a leap, “encouraging” can be mute and indirect.
    Don’t stone the messenger, unless you are multi-lingual and have access to foreign websites.

    • Any citations with evidence of instruction or encouragement will be appreciated.

      • It actually makes little sense. Buying Gold and Silver sort of does though, it’s portable and useful even outside of it’s “monetary” value.

        Real Estate on the other hand though? Sure, I could see them trying to buy up natural resources etc. But real estate? Makes little sense, it just ties up money without any real value for China itself.

      • vreaaa, I’ll look for it when I’ve more time. For now, I just want to point out that bears are victims of their own. In the past 7 years, bad advice and misinformation were passed by some bears who had no business giving financial advice to others. The exception is Mohican, who is not only a qualified Financial Planner, but has done very well for himself and his family.

        One example is the rowdy bears at vancondoinfo attacking that idiotic poster “LY” – it was a scene like casting pearls before swine. There are 9 videos at YouTube for whatever conclusions one wish to derive at. Let’s start with Harper’s CNY message to the White Rock’s Chinese:

      • 29 -> Thanks for the comments.

        Two things:

        1. It is important to differentiate between internet based discussion of economic & market matters and “financial advice”. Yes, some bears have been calling for a crash for years; in so doing, the vast majority of them appear to have simply been sharing their honest opinions of the market. Most of them seem to have acted on their own beliefs. Every individual is responsible for doing their own due diligence regarding their own financial actions.

        2. Please clarify: What aspect of the video that you’ve posted do you see as important and relevant to this discussion?

      • 2. Please clarify: What aspect of the video that you’ve posted do you see as important and relevant to this discussion?
        …………………………
        Some of the posters there didn’t believe that WR’s demographics are slowly changing. No, I’m not for signs going up other than our official languages. A Richmond massage parlor that was in the news not long ago, has a sign literally means “sunshine”, and its English version “Atlantis”. Can you imagine the confusion and danger it would cause to our law enforcement to locate it to take down gun-totting bandits. But I digress.

  2. I’d sooner take my advice from some anonymous internet poster on the internet than a registered financial advisor. At least the poster doesn’t gain from selling me certain products.

  3. China is supposedly strict on forex regulation. How and why did they allow the privileged few to circumvent their own rules?

    http://news.singtao.ca/toronto/2011-02-11/city1297415734d3000741.html
    Funds remitted from China to Canada per month increased 20 fold in the past 5 years.
    RCMP reminding the Chinese community to look out for signs of money laundering.
    2011 February 11

    Briefly,

    Average cash remittances per month in the past 5 years, has increased 20-fold.
    2005 – China–> Canada, around 1,000 transactions per month
    end 2009 – China –> Canada, averaged 20,000 transactions per month
    end 2009 – Canada –> China, 7,000 – 10,000 transactions per month

    In 2010, the amounts remitted in and out are even, breaking the record for the first time.
    2010 – China –> Canada, total funds remitted C$500M

    Criminals keen to launder money through real estate
    Derek G Matchett advised residents to be alert if someone wants to use your name to purchase properties, deposit huge sum of cash, transfer of liquid assets, and report to RCMP.

    • The Chinese government realizes that there is a property bubble in China and they are worried about it. Letting people buy RE outside of the country is to find an alternative outlet for the Chinese animal spirit towards RE. If that leads to a bubble, say, in Vancouver, any future collateral damage from bursting of the bubble will be inflicted on Canadians.

      • When I say Canadians, I am thinking about the Canadian economy. Also, I am not saying it’s a conspiracy by the Chinese government.

      • I don’t think it’s that easy.

        The reason China is building so much is not because they are all gung-ho about it but because it keeps a lot of non-educated people employed and fed.

        To have the capital flow out into other markets doesn’t really accomplish this.

        I think people make the mistake to look at China and then apply OUR problems / concerns to their actions. That’s a bad mistake to make. China’s goals at this point aren’t the same as ours. Their main goal is to try and bring the majority of people into “middle class” living standards (or at least out of the poverty that they are currently suffering), for the CPC it could just be the only thing that will keep them in power in the long run.

      • Michael,

        I thought about the capital outflow issue as well. But then I thought, “Well, they can just print money to compensate for that to generate the growth numbers they want to see.”
        If the goal is to grow the middle class in China, then a housing bubble is bad because it further impoverishes the majority who sees their disposable income reduced as a result of higher rent or a larger mortgage. In fact, consumption as a percentage of GDP in China has been reducing, not growing. Moreover, when the bubble bursts, economic hardship will breed social instability, the last thing the CPC wants to see.

  4. I posted this before, and i will post it again… this is in responce to this statement…

    “Any citations with evidence of instruction or encouragement will be appreciated.”

    This is from “ChinaDaily” a major newspaper in China, and guess what… they have open forums in the paper, I encourage some people to actually go to the business section ( i will post a link) and you can read to your hearts content about the population of china actually have to say about how they see what goes on in their country. They are NOT backwater and ignorant as some in the west think they are… they can read and will answer questions you may have if you care to open an account and ask them directly.

    cheers…

    on property purchases

    http://bbs.chinadaily.com.cn/viewthread.php?gid=2&tid=687787&extra=page%3D3

    Chinese economy threads

    http://bbs.chinadaily.com.cn/forumdisplay.php?gid=2&fid=33&page=3

    • They are NOT backwater and ignorant as some in the west think they are… they can read and will answer questions you may have if you care to open an account and ask them directly.

      Careful. There is no “one China” there are huge differences between the coast and the interior. To say that what is on these papers is the only truth about China is a bit naive.

      Considering how heavily China censors the Internet I would also not take any statement made on that side as: “Open discussion”. You and I do not know what they are NOT posting. Heck, the CBC here in Canada regularly “moderates” comments they don’t like, so to think that in a much more authoritarian state and a culture that is alien to us this wouldn’t happen is just dumb (yeah, I said dumb).

  5. Sorry vreaa, i wasn’t slagging you, i was defending the thought you were having about where people get information and prefer to spread misinformation.

  6. ChinaDaily is heavily moderated. Check out who owns the site.

    • ok anon, what do you counter with? where do you read about what is msm in China? at least this is an option to ask and read opinions.

  7. China Daily is a state-run publication.
    The stated goals of the newspaper are to “objectively present China and China’s news to a unique group of readers and providing services and entertainment specially suited to those readers.”
    Most of the paper’s editorial staff are still Chinese, whose English reports are ‘polished’ by a small group of expatriate editors employed on short-term contracts. …—expatriates hold no senior editorial or management positions in China Daily.

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