Analyst in DNB Markets Ole Andre Kjennerud on the impact of a slowdown in the Chinese real estate market
NBF and DNB hosted an event the 1st of September, 2014 at the St. Regis Hotel in Beijing. The event featured DNB senior economist Ole Andre Kjennerud who held an intriguing talk on what would happen to the economies of the world in the event of a bubble or slowdown in the Chinese real estate market.
By utilizing a wealth of raw data from an impressive amount of sources Kjennerud was able to create a detailed overview of the state of the Chinese real estate market, which commodities markets are dependent on a continuing boom in housing, and which sectors and countries can expect to experience lower exports to China in the event of a slowdown.
Kjennerud argued that a slowdown in the real estate market is occurring due to overcapacity in housing, especially in smaller inland cities where overcapacity could be as high as 60% of completed houses. The overcapacity slows investment growth, and thus slows imports related to building houses. Further, this will negatively impact the economies that rely on exports to China.
The event was free for all NorAlumni China members participating, and After Kjenneruds talk all the participants were welcomed to an exceptional dinner at the fabulous St. Regis Hotel.