Real Estate

Chinese stock market opens down 8.5%

  • Last Updated:
  • Feb 3rd, 2020 8:45 pm
[OP]
Deal Guru
Feb 22, 2011
13124 posts
16745 upvotes
Toronto

Chinese stock market opens down 8.5%

This is the max allowed since it's a rigged market, should continue to drop as people keep selling the max they can. Where will all this money go? I doubt they just hold cash.
9 replies
Jr. Member
Feb 20, 2017
119 posts
96 upvotes
Hamilton, Ontario
The PBOC also announced they would pump in $173B into the chinese economy. That should help.
Sr. Member
Oct 23, 2002
521 posts
223 upvotes
Montreal
Keep in mind that the markets were closed for Lunar New Year and so this could be the cumulative effect of what would have been a slower market drop elsewhere. With that said, extended closures to minimize virus transmission will have an economic impact.
Deal Addict
Dec 4, 2016
1995 posts
1016 upvotes
Nobody cares about that rigged market. S&P 500 has recovered somewhat this morning, so overall market is betting on thing not getting much worse. Keep in mind that big tech companies all that huge exposure to China and emerging economies in general.

Currency control could be significantly tightened. Any GTA/GVA RE bull should be careful wishing for a full meltdown in China. A steady Chinese economy should generate a steady flow of money into Canadian RE.
Jr. Member
Aug 21, 2017
195 posts
132 upvotes
Chinese economy good -> all that extra money will rush to Toronto RE. condo price doubling in 2 years!
Chinese economy crashing -> rich chinese will panic and rush to buy Toronto RE. condo price to the moon!!
Deal Addict
Mar 13, 2017
1014 posts
1185 upvotes
fiddlewin wrote: Chinese economy good -> all that extra money will rush to Toronto RE. condo price doubling in 2 years!
Chinese economy crashing -> rich chinese will panic and rush to buy Toronto RE. condo price to the moon!!
This to me sounds similar to this logic:
- positive cash flow: buy 3 condos and smile
- negative cash flow: buy 3 condos and smile
Sr. Member
Jun 15, 2015
969 posts
1179 upvotes
Thornhill, ON
Real estate agents moto: Any time is a good time to buy.
Deal Addict
Dec 30, 2012
1098 posts
1147 upvotes
Toronto
fiddlewin wrote: Chinese economy good -> all that extra money will rush to Toronto RE. condo price doubling in 2 years!
Chinese economy crashing -> rich chinese will panic and rush to buy Toronto RE. condo price to the moon!!
Interest rates fall —> RE to double since everyone can buy and banks are giving it away!

Interest rates rise —> RE to double since everyone is going to pile in before rates rise even further!
Deal Addict
May 22, 2019
1388 posts
1685 upvotes
sircheersa wrote: This is the max allowed since it's a rigged market, should continue to drop as people keep selling the max they can. Where will all this money go? I doubt they just hold cash.
This is good for condo market in Canada, but bad for detached market in Canada
World cup is coming
Deal Addict
Mar 13, 2017
1014 posts
1185 upvotes
ilovetoyota wrote: This is good for condo market in Canada, but bad for detached market in Canada
Right.

And I'm thinking good for units with even numbers; not good for units with odd numbers.

It's all so clear now.

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