Posts by chris
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Not my implication at all – it’s a point about the emphasis you place on price, as if it were the only (or the principle) consideration in the production process that makes a good “competitive”. In this case, Kiwirail explain in your link that the supplier was chosen because;
My emphasis on price was merely a rewording of the text from the RNZ link. I didn't feel that the example did my point justice which is why I immediately posted again, linking to those John Holland projects, along with the wikipedia link in case anyone missed that John Holland is a 100% owned subsidiary of China Communications Construction. Company.
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Polity: A week on from the housing controversy, in reply to David Hood,
Chris, what country is that graph for (and why does it stop almost a decade ago)?
David it’s from New Zealand, I don’t know why it stops then.
http://www.teara.govt.nz/en/graph/30207/rates-of-home-ownership
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Polity: A week on from the housing controversy, in reply to Andre,
Ah, I got you Andre, sorry, certainly. A tad over-sensitive on my part. Katharine’s post was most probably similarly innocuous.
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OnPoint: Don't put words in our mouths, Rob, in reply to Keith Ng,
So there are some seasonal patterns to house sales in general. What drives those seasonal changes, and might it affect the ethnic distribution of house sales?
Exactly, unlike NZ The Chinese fiscal year for all entities starts on 1 January and ends 31 December, consistent with the calendar year, to match the tax year, statutory year, and planning year. This means that a citizen from the PRC would have been able to legitimately transfer 50,000USD offshore at the end of Dec and another 50,000USD once the new year began. That would be in the ballpark for a deposit on an Auckland property. Coming from the PRC we had to accomplish offshore transfers within that time frame and after looking around we had a final offer accepted within Labour’s sample period, it’s incredibly relevant. That’s roughly when Chris Waugh and his family arrived too if I’m not mistaken.
I guess Rob could ask whether the property was purchased in my name.
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Polity: A week on from the housing controversy, in reply to Andre,
Political assertion isn't a one way street Andre; http://www.theguardian.com/us-news/2015/feb/24/chicago-police-detain-americans-black-site
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Polity: A week on from the housing controversy, in reply to BenWilson,
this might not be a bubble, it might be a boom.
When you make the top ten we’ll bring the balloons
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Polity: A week on from the housing controversy, in reply to Katharine Moody,
In the context of this thread and the various sentiments clouding this issue I’m obviously very weary of saying much about that with so little exposition on your part. I’m hoping your implication isn’t that unsafe manufacturing/ workplaces and illegal/ questionable work practices are exclusive to Chinese companies, these things happen across the board. The transparency and access to the information you linked to including the remedies outlined are a credit to our democracy.
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Mr Tiso’s round-up: The Life and Death of the Political Author
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Polity: A week on from the housing controversy, in reply to chris,
Rates of Home Ownership
There is nothing revolutionary about this phenomena. Hopefully a name like John Holland sounds European enough to slip in under the radar. While Labour are plying their wares to old school New Zealand xenophobia, prodding people to zealandly ask “how can we restrict this?” the National Party are positively Chinese in their approach; clearly thinking; “how can we capitalise?”. It’s the distribution imbalance of said capital that the Labour of old would have focused on and you’re not, you’re turning your nose up at it. 中国欢迎你Little先生.
Must....stop...the....money....flowing in.
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For those who have trouble grasping what 60 trillion means, here is a graph of typical NZ monthly house sales (about 5 billion at the moment, on left) compared to 60 trillion (on right)
I’d be weary of going overboard with the scaremongering, compare it to NZ$650bn by all means.
Liam Dann can be quoted as saying:
China has nearly 60 trillion New Zealand dollars of capital to play with.
Rodney Jones’ actual quote was:Financial assets in China exceed Y245tn – or nearly 60 trillion New Zealand dollars. As China opens up, more of this capital is free to flow abroad. In the last 12 months, net capital outflow from China has reached as high NZ$650bn – or nearly three times New Zealand’s GDP
Previously it’s been a nightmare getting money out of China:
Apart from QDII, current rules allow Chinese residents to convert $50,000 worth of renminbi to foreign currency annually. In reality, investors have also exploited various loopholes to move money offshore, including disguising outbound financial flows as payments for imported goods.
Try buying an Auckland house with $50,000, this applies to everyone including Chinese students, New Zealand residents and New Zealand citizens. Foreigners in China are limited to transferring 500USD per day and only on nonconsecutive days.
QDII2 will start as a pilot programme in Shanghai, Tianjin, Chongqing, Wuhan, Shenzhen and Wenzhou, the official Securities Times reported this week. Individuals with net financial assets of at least Rmb1m ($161,000) will qualify for the programme, with total outbound investment limited to 50 per cent of the individual’s net assets.
[…]
Liang Hong, economist at China International Capital Corp, estimates that if the programme were expanded nationwide, it would theoretically free up about Rmb41tn in domestic wealth for overseas investment. But analysts caution that Chinese authorities, wary of unleashing uncontrolled outflows, are unlikely to scale the programme up that quickly.
China, as the world’s largest saver, has a major role to play in the global financial rebalancing toward emerging markets. Today, these countries represent 38 percent of worldwide GDP but account for just 7 percent of global foreign investment in equities and only 13 percent of global foreign lending.1 Their role seems poised to grow in the shifting postcrisis financial landscape, since the advanced economies face sluggish growth and sobering demographic trends. As a lead player in that shift, China could become a true global financier and, with some reform, establish the renminbi as a major international currency.
If we can’t provide the infrastructure to cope with Chinese real estate investment, I imagine it’s only a matter of time before they’ll be building it for us, and most probably at more competitive prices:
As the Chinese continue to expand their real estate holdings, construction companies are winning contracts for major projects in and around those sites. In 2010 alone, Chinese construction companies signed $1.04 billion worth of contracts with various U.S. business partners and completed $836 million worth of projects in multiple states.
If that hasn’t already begun.
Chinese company CNR Corporation has won a $29 million contract from KiwiRrail to build 300 new rail wagons.
Kiwirail says it turned to the overseas firm because New Zealand workshops were not competitve and could not complete the contract on time.
The horizontal illusion driving a lot of the hysteria seems to be that accommodation is an endangered resource. Butwith regards to Auckland real estate it’s plain to see that compared to China, New Zealand remains vertically challenged.
Comparisons with Hong Kong and Singapore are important, especially if you have a map handy, i.e. find them without a magnifying glass.
