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Future of Growth in Chinese Real Estate and Economy Questionable, Finds


Shanghai, China -- (SBWIRE) -- 10/08/2012 -- Experts at released yesterday their analysis of Chinese Economy. Much of the analysis focused on Chinese Real Estate and Retail which has attracted flak for disorganization and lack of transparency.

The analysis of China real estate is presented by Knight Frank’s Thomas Lam and Regina Yang. Knight Frank is a global residential and commercial property consultancy which was founded in 1896 and has headquarters in London. Thomas Lam is the head of research in greater China while Regina Yang is the head of research and consultancy in Shanghai.

The review has called the present state a bubble, with undue spending to increase demand within the country. The calls of China real estate bubble have grown louder with slowing down of economy all round the world including that of China, and the review reinstates some of the fears. According to the review, after the major decline in exports due to the global economic recession the Chinese government has deviated towards domestic retail market to ensure sustainability. The retail real estate continues to grow as more mega shopping centers are being constructed in major cities as well as other 2 tier cities. Some of these 2 tier cities have larger shopper centers compared to cities like Beijing and Shanghai.

However the review says that these constructions are unorganized and many major factors have been overlooked while constructing them. “The Seven Deadly Sins of China Retail Space Development” have found special mention in the review. Some of these sins are stated as the failure to construct centers near public transportation, overbuilding, retail mismanagement and misunderstanding of trade area.

The future of economy of china is questionable; add Thomas Lam and Regina Yang in conclusion. Mainly due to the insufficient data, “The retail market in China continues to be impacted by a lack of transparency and obtaining reliable data remains challenging.”

Other research analysts have seen the same trend in household sector. China continues to build, the costs keep rising. Most of these houses are vacant which is of major concern to the investors.

Economic climate in China has been hampered by government policies, especially when it comes to foreign investment, finds the review. Such policies are not just limited to economy; browsing internet has been a bane as well in China. But like economy, China has come up with local solutions to fight these policies – one being VPN. What is a VPN? The review states Virtual Private Network encrypts data while browsing to the internet such that no one can spy on your personal details. With a VPN service one can ensure online security, browse information that is censored, establish safe Wi-Fi connectivity and block IP.

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