China, 60 Billion Might Only Be the Beginning: "According to the Financial Times last month, the Chinese opened more than 4.8 million new stock trading accounts in March and a million more in the first two days of April.
By the end of the first quarter, the figure was up 433% from the previous year. Most of them are believed to be first time investors. Margin lending — borrowing money to buy shares — has doubled in six months.
Gold jewellery demand has fallen 10%, according to the World Gold Council. The FT says,
‘Middle-aged women, the so-called Dama, or “aunties”, who were among the most prolific buyers of gold in 2013, rushed to open stock accounts instead, said the industry body. “This shift has eaten into demand for gold, which has lacked clear price direction in recent quarters,” it added.’
The boom is on. If you had bought, just for example, the Deutsche X-trackers Harvest China A-Shares Fund [NYSE: ASHR] in October 2014, you would now be up 90% in six months.
That’s the kind of money, and — arguably — speculative mentality, that could come into Australia. Real estate wise, Chinese buyers in Sydney and Melbourne already account for 23% and 20% of new housing supply, according to a Credit Suisse report released earlier this month.
They think the Chinese could pump $60 billion into Australian housing over the next six years. That’s double the previous six.
The potential capital gains are lucrative enough to offset the extra charges on foreign buyers. The Australian Financial Review reported on Friday that since May 2012, Sydney house prices have risen 38%. For Melbourne over the last three years, the figure is 23%."
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By the end of the first quarter, the figure was up 433% from the previous year. Most of them are believed to be first time investors. Margin lending — borrowing money to buy shares — has doubled in six months.
Gold jewellery demand has fallen 10%, according to the World Gold Council. The FT says,
‘Middle-aged women, the so-called Dama, or “aunties”, who were among the most prolific buyers of gold in 2013, rushed to open stock accounts instead, said the industry body. “This shift has eaten into demand for gold, which has lacked clear price direction in recent quarters,” it added.’
The boom is on. If you had bought, just for example, the Deutsche X-trackers Harvest China A-Shares Fund [NYSE: ASHR] in October 2014, you would now be up 90% in six months.
That’s the kind of money, and — arguably — speculative mentality, that could come into Australia. Real estate wise, Chinese buyers in Sydney and Melbourne already account for 23% and 20% of new housing supply, according to a Credit Suisse report released earlier this month.
They think the Chinese could pump $60 billion into Australian housing over the next six years. That’s double the previous six.
The potential capital gains are lucrative enough to offset the extra charges on foreign buyers. The Australian Financial Review reported on Friday that since May 2012, Sydney house prices have risen 38%. For Melbourne over the last three years, the figure is 23%."
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