Only this time, the effects could be felt on a global scale, as the low interest rates and easy financing will lead to higher interest rates down the road. Once this takes place, is the point that the real estate market and the country's financial system will become vulnerable to various shocks that can take occur in the economy. This is the biggest problem that the Chinese real estate market is facing as excessive amounts of speculation could make any kind of eventual downturn worse.
Bibliography
China. (2010, April 7). Retrieved April 21, 2010 from CIA website:
https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html
Demand and Supply. (2010). Retrieved April 21, 2010 from Investopedia website:
http://www.investopedia.com/university/economics/economics3.asp
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2.5. Limitations of the study At the level of the limitations, these refer to the usage of secondary information, as opposed to the collection of primary data through the direct analysis of the Chinese market. This limitation is nevertheless addressed through the integration of multiple sources of valid and verifiable information, leading as such to the creation of solid, relevant and reliable findings. The second limitation is one common to all research
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