2010年4月10日星期六

Crisis on RMB value up and property bankruption

We are face a serious that RMB will be increased value soon, it seems confirmed, as US's financial header will visit China end of April, China get much pressure and will make some concession, will loose a little at RMB exchange rate.

Now, let us to see what result will fall our head once RMB value increase further more.

In China stock market, many investors are from foreign finance organizations, it called QFII, they make much benefit in 2008, peak position of bull market. The index is 6400 at that time, and adjust 2 years, it now around 3000.

For property, it is always on bull, just a little down in 2009 which economy crisis happened in US, and it affect China, but now, the price is cover 2009's peak.

Why? Cause China's policy is stable for property, so, stock capital makes benefit and escape to property. And another side, property developers hold house, sell small, and speculate property, some speculators follow up to buy many house, and hold for more higher price, then transfer to another one for speculation.

Where is money from for the speculators and property developers? Bank is their background, they keep a good relation ship with them. Why they could keep a good relation ship with bank? Bribe the bank in charger, and get the loan from bank on their speculation stock, property. But common people couldn't make loan from bank, as they don't have relation and something could be mortgage. So, rich becomes richer, poor becomes poorer.

Domino effect

After RMB value goes up, the foreign capital will make sucessful and escape from China. At the time, China government has to sell USD and buy RMB from foreign finance organizations, then, so much RMB current in market, and will make goods price up. Stock market index will goes down as short money, and property will collapse due to capital broken.

The lastest result will be for Chinese: RMB value goes up for foreign and down for inside, and will make turmoil in society!

Care and Care, don't be the victim at the exchange rate reform!

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