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Fallout from the Chinese Property Market
This tumult is not the only area of concern in the Chinese economy.
Provided by Stuart Cooper, CRPC®, Michael Chatterton, CRPC® & Michael Pozzi
There’s a famous saying about a hurricane starting from a butterfly flapping its wings on the other side of the world. That “butterfly effect” is certainly happening in terms of the Chinese property market’s influence on
financial markets around the world.
For America, the concern contributed to the worst single day for the S&P 500 since May of this year. With building on a decline in China, the effect is felt in related industries in the U.S., such as construction equipment and investment firms.1
This tumult is not the only area of concern in the Chinese economy. Chinese President Xi Jinping is enacting policies throughout the year designed to give the government greater control over private enterprise. For many, this is seen as curbing
decades of economic growth and a genuine game-changer for a world economy accustomed to a more permissive Chinese economy.2
Still, it’s important to remember that regulatory behavior around the world, no matter how strict, is one of the many factors considered by your trusted financial professional. In addition to regulatory risks, international markets have
differences in financial reporting standards, currency exchange rates, political risk, and foreign taxes.
If you have questions or concerns about this situation, I welcome the opportunity to talk with you.
Stuart Cooper, CRPC® may be reached at 847‐672‐1833 or [email protected]
Mike Chatterton, CRPC® may be reached at 847‐576‐5191 or [email protected]
Michael Pozzi may be reached at 847‐672‐1292 or [email protected]
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note ‐ investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.
Citations
2. WSJ.com, September 20, 2021