Overheating of the real estate market of China has long been wary investors.
The Chinese government seek to rectify the situation by redirecting funds to the car market through tax incentives. And now, there is already a new bubble.
Although some segments of inflation, China's leadership is concerned and also the weakening of the situation in the economy. Need to do something. Theoretically, we can talk about QE program. In fact what happens next. As can be seen from the data on the balance of the budget, China has been implementing a large-scale incentives, but no more monetary and fiscal. According to the estimates of the investment company Evercore ISI, this year it is about 4.5-5% of the GDP of China. Experts expect similar performance in 2017.
Interestingly, China is at odds with the practice of other major world powers, to bet on monetary stimulus. However, while China's measures had little effect on the global economy, maintaining only the very Chinese. BCS Express