by Russel Norman
The New Zealand Superannuation Fund has, on our behalf, decided to take a $23 million bet on a property development company with significant exposure to China — a country where some reports say that there are 64 million vacant apartments.
The Fund’s stake in Hong Kong-based property development company Sun Hung Kai is the tenth biggest investment the Fund’s made in an international company, according to their December performance report.
Is China the next big property bubble on the brink of collapse?
The Chinese Government has spent much of its massive export revenues on building brand new cities. Trouble is, not many Chinese people can afford the prices of new apartments and some of the cities have become ghost cities — their emptiness visible on Google Earth.
If you find the satellite images interesting, this SBS Dateline report (Australian TV) takes you there on the ground and leaves you wondering how all this building activity could possibly end well.