Video Of The Day: Why You Should Care About China's Market Chaos
Many questions surround the chaos of China's economic slowdown. (This year alone, stocks crashed so hard the government shut down the market. Twice.)
In our Video Of The Day, Bloomberg breaks down what chaos in China's markets means and why the world, capital markets—heck—any related industry need to take notice.
Here's why everyone is freaking out:
- China's change in growth rate has decreased from 10% in 2010 to around 7% in 2015
- This decline has caused a huge dip in foreign investment into China, down from approximately $400B in 2014 to only $71.5B in 2015
- Chinese citizens took around $300B out of the country in 2013, a number that's jumped to approximately $550B in 2015.
Will the rapidly declining spending power slow down the (estimated) $50B influx of capital into US real estate? Or will the turmoil simply kick China's capital flight to the safe deposit box of US real estate into a frenzied overdrive?