Glut in China's Real Estate, Sinking PMI Spook Investors
Yesterday TheStreet's Jane Searle reported on the fall in the Purchasing Managers' Index, or PMI, "a key indicator of Chinese manufacturing [that] could set the tone for global equity markets tomorrow, with growth in the world's second largest economy crucial to the outlook for emerging markets." Investors are beginning to fear a "hard landing" due to China's "mountain of local government debt and a potential property bubble."
Today we turn to Eric Johnson, our reporter in China, for a more in-depth look at the weak PMI and real estate in China.
BEIJING (TheStreet) -- Reports of faltering real estate markets in several cities added gloom to a key manufacturers' survey Thursday, pointing to worsening business conditions in China.
The media reports in cities such as Hangzhou, Suzhou and Xiangyang underscored trouble for a domestic pillar of the Chinese economy -- real estate -- while the lower HSBC Flash China Manufacturing Purchasing Managers' Index pointed to a weakening export market.In response, the S&P 500
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