“When the global financial crisis impacted China’s exports in 2008, Beijing ordered its banks to support a massive credit expansion to create jobs and stimulate growth. The banks eagerly went into action and in 2009 and 2010 made new loans amounting to a total of 20 trillion yuan ($3.1 trillion). Of these a significant amount went to local government borrowers.” – from ‘China’s Bank Reckoning Approaches’, Wall Street Journal, 19 Jun 2011
“Thousands of corrupt Chinese government officials have stolen more than US$120bn and fled overseas, mainly to the US, according to a report released by China’s central bank. Between 16,000 and 18,000 officials and employees of state-owned companies left China with the funds from the mid-1990s up until 2008.
The officials used offshore bank accounts to smuggle the funds, according to the study posted on the People’s Bank of China website this week but which has since been removed. It said the officials smuggled about 800 billion yuan into the US, Australia, Canada and Holland through offshore bank accounts or investments, like property or collectables.” – from ‘Chinese officials stole $120 billion, fled mainly to US’, BBC, 17 Jun 2011
Perhaps Vancouver RE has ‘benefited’ from some of these funds.
Is this an effect that we can expect to continue? – vreaa