Of all of the world’s skyscrapers under construction, China is home to 53% of them.

According to Barclay’s Skyscraper index, China seems to be on its way to a financial crisis. In the report presented below, the British bank says that there is an “unhealthy correlation” between the building of skyscrapers and subsequent financial crashes…… often the world’s tallest buildings are simply the edifice of a broader skyscraper building boom, reflecting a widespread misallocation of capital and an impending economic correction…Examples include the Empire State building, built as the Great Depression was under way, and the current world’s tallest, the Burj Khalifa, built just before Dubai almost went bust.

What about China?

… using skyscrapers under construction, it is evident that the skyscraper boom in China continues to grow. China will complete 53% of the 124 skyscrapers under construction over the next six years, expanding the number of skyscrapers in Chinese cities by a staggering 87%. China’s skyscrapers are not only increasing in number – it now has 75 completed skyscrapers above 240m in height – but the average height of the skyscrapers that it is building is also increasing as past liquidity fuels the construction boom…

Full report below.

Index+ +Bubble+Building+100112+(2) 1.14300620

 

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