Things aren't looking too rosy in China either 🤔
Shares in Chinese property development giant Country Garden extended their losses as investor fears of a debt crisis in China's real estate sector continue to mount. The company's shares have lost more than 11% over the past week. Country Garden is the largest property developer in China and its shares have already fallen 52% this year. China's real estate sector is facing a severe liquidity crisis as regulators have tightened rules on developers taking on new loans. This has led to several companies being unable to repay on time. As a result, investors fear that the problems could lead to a wider financial crisis.
Do you have investments in China? Is this a problem for you?
I don't have any investments in China, but I was thinking of buying at least one Chinese stock.
I have $BABA-1.6% and the technology company ETF $KWEB-2.0%. It's only a matter of time before the Chinese economy takes off, then stocks will fly. I don't see this as a problem given my exposure.
It depends on where and how you want to invest in China. If you plan to invest in the real estate sector, being cautious is definitely a good decision. However, there are other sectors that are thriving in China, such as technology. So, if you have a good strategy and are willing to take risks, it can still be a good choice.
It's a problem, but it's probably not on the financial crisis. China will start pouring money into the economy and either ease it or stabilize it.