By Shiyin Chen and Haslinda Amin, Bloomberg News
May 3 (Bloomberg) — InvestorÂ Marc Faber said Chinaâ€™s economy will slow and possibly â€œcrashâ€ within a year as declines in stock and commodity prices signal the nationâ€™s property bubble is set to burst.
TheÂ Shanghai Composite Index has failed to regain its 2009 high while industrial commodities and shares of Australian resource exporters are acting â€œheavy,â€ Faber said. The opening of the World Expo in Shanghai last week is â€œnot a particularly good omen,â€ he said, citing a property bust and depression that followed the 1873 World Exhibition in Vienna.
â€œThe market is telling you that something is not quite right,â€ Faber, the publisher of the Gloom, Boom & Doom report, said in a Bloomberg Television interview in Hong Kong today. â€œThe Chinese economy is going to slow down regardless. It is more likely that we will even have a crash sometime in the next nine to 12 months.â€
AnÂ index tracking Chinese stocks traded in Hong Kong dropped 1.8 percent today, the most in two weeks, after the central bank raised reserve requirements for the third time this year. The Shanghai Composite has slumped 12 percent this year, Asiaâ€™s worst performer, as policy makers seek to rein in aÂ lending boom thatâ€™s spurred record gains in property prices. Chinaâ€™s markets are shut for a holiday today.
Copper touched a seven-week low and BHP Billiton Ltd., the worldâ€™s biggest mining company, fell the most since February on concern spending in the worldâ€™s third-largest economy will slow and after Australia boosted taxes on commodities producers.Â Rio Tinto Ltd., the third-largest, slid as much as 6 percent.
To read more, visit: http://www.bloomberg.com/apps/news?pid=20601010&sid=aMbfBKW.uKn4
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