Will Chinese slump swamp our bit of Asia?

I’ve talked before about the challenge facing the Chinese economy.

Here’s two charts from   that detail the slow down and the impact its having out of the main coastal areas.

More and more of the world is inextricably linked into China’s success as shown by Export trade as a proportion of world GDP.

and the overall source of China’s imports

 

Which shows that more than half of Chinese exports originate in Asia.

But if you consider the specific destination of Singapore, Malaysia and Indonesia exports both to China and to those economies inextricably linked to China the situation is not so rosy should China go though a recession or should Chinese growth stumble or stall.

Here’s Singapore’s exports to China 2011

Around a quarter of Singapore’s exports- to China, Hong Kong and Australia- could be affected by A China downturn.

Here’s Malaysia’s export destinations

 

less dependent than Singapore at around 17% to China impacted destinations

And Indonesia

again less impacted than either Singapore or Malaysia.

So while a China slow down won’t be pretty it may be that out local economies

Where should you be be wary, in residential and commercial property.

The Chinese have overtaken Malaysians as the second-largest overseas buyers in Singapore’s residential market, despite the Singaporean government introducing measures aimed at cooling down the market. Indonesian, Chinese and Malaysian buyers accounted for 24%, 16% and 14% of the sales respectively, property development company has said. But the Chinese made up the majority of the buyers who spent S$5 million or more on residential property in central and prime markets and,  31% of the 54 homes worth S$5 million or more were sold to Chinese buyers.

So i hope you are in position to be a buyer in a potential fire sale of property as Chinese investors seek to cash out.