Comparison of real estate bubble from Florida to Hainan
My research aims to compare the housing and credit bubbles between China and the US by comparing real estate bubbles of Florida and Hainan. It took the US government 4 years to overcome 2008 financial crisis. Now China has entered the era of stock housing. In the early of 2016, China had 8.4 billion sq.ft stocking housing 1. If the crisis is inevitable, how and where will it happen? What's more, I want to find out the role of financial innovations in securitization along with the incompleteness of real estate markets in the global financial crisis. Were "innovations" in securitization a common cause of the crisis of what was a global cycle? My paper will help readers to further understand the U.S. subprime mortgage crisis, as well as China's current problems faced by the real estate bubble. By comparison, I hope that the United States before the problems faced by the U.S. government and the solution can be used for reference to the Chinese government and related companies in order to face the possible real est e bubble crisis. Still, China's property market looks relatively sane when compared to the peak of the Japanese residential property bubble in 1990 and Hong Kong's current property market. During this period of Japan's housing value-to-GDP ratio peaked at just under four and today Hong Kong's ratio stands at around five. As we can see, the housing and credit bubble in China is so huge now that China has never been before. As Wang Jianlin, the leader of the biggest real estate company in China, saying, "The Housing bubble in China is the biggest in history."