I think China’s property market is like the Titanic and it will soon hit an iceberg in front of it…After hitting the iceberg, the risks will not only be in the real estate sector. The bigger risk will be in the financial sector…When housing prices fall 20% to 30%, these problems will be all exposed (referring to wealth and trust products.)
This is from tycoon co-founder and chairman of Soho China Ltd. Pan Shiyi as quoted by the Wall Street Journal.
Mr. Pan is not alone. Asia’s richest man Li Ka Shing has reportedly sold all his assets in China early this year, which is demonstrative of Mr. Li’s dire outlook on the economy. This shows where the sentiment of smart money has been.
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