Goldman Sounds a Warning on China Property, Outlook for Metals
- Policy-driven ‘booms tend to be followed by slumps,’ bank says
- ‘Our analysis points to risks for metal prices,’ Goldman warns
Assessing the Health of the Asian Property Market
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Goldman Sachs Group Inc. has sounded a warning about the outlook for China’s property market, saying it sees growing risks across the industry and that any downturn will pose a challenge for metals, especially iron ore and steel.
“We see growing vulnerability in the Chinese property market,” the bank said in a commodities report, citing possible overbuilding, concern some people now can’t afford homes and rising speculation. “Policy-driven housing booms tend to be followed by slumps due to the payback effect,” it said.