If the PRC property market collapse, it will cause mayhem in the PRC economy. The PRC govt, having learnt the experience from US subprime crisis will not let that happened in the land of the Dragon. I suspected that the PRC govt will pull all plugs, throw in sugar and cafferine to revive the property market in the 2nd and 3rd tier cities. (Where the buyers are mainly buying for home stay). This applies also to most of the sites that China New Town is developing... At 4 cents, downside is limited and upside is 100% or more... As for the cash draining explaination, my personal opinion is that the management can negotiate with the provincial government to slow down the development until the market sentiments improve.. In China, relationships counts more than regulations. :laugh: :laugh:
At 4 cents cost, a half cent drop is 12.5% lost. Not a small risk if you love money as I do. The market more or less assumed CNT not going to survive at this price now.
er.. I thought it works both ways? Up 0.5 cent also 12.5% profit right? :laugh: :laugh: :laugh: Market in the short term is a voting machine but a weighing machine in the long term... Up to you to decide which one to choose. :laugh: :laugh:
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