Does China’s (NYSE:FXI) real estate market have serious economic problems?
Bloomberg News’ Paul Allen reports exclusively today from Dongguan, China, on new evidence of what may be a property bubble in China.
Allen tours the South China Mall, originally conceived as the world’s largest mall, and finds retail space that has been largely vacant since 2005. Allen reports:
“The reality at South China Mall is somewhat different: shuttered shops, unfinished, never occupied by a single tenant. The few retailers that are here have favorable leases, but little profit.”
Allen also states that despite obvious problems, the mall’s owners plan to expand to more than one million square meters of retail and residential space will be available.
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