The Chinese stock market suffered its lowest of market share plunge, resulting in global markets taking in the adverse effects from the crisis experienced by the world's second biggest economy.
According to an article in globalnews.ca, the Toronto Stock Exchange is preparing to make advances for any uncertainties in light of China's dwindling economy. The report also highlighted on several areas that Canadians need to be aware of and be rightfully prepared to take in upcoming real estate hardships. Here are a few tha may occur:
- The country might enter into a state of recession - The unavoidable thought of the US economy showing improvements in the employment sector after saving itself from a long-term nationwide recession could already signal Canada to go into a temporary period of recession for the meantime.
- Oil price hikes - The $40/barrel rate and hint of a global slowdown is affecting the Canadian currency, sending it down from about 0.50 to 75.5 cents US. The loonie purchasing power could remain the same for an extended period of time, and thus won't provide reliability in terms of goods affordability and other basic commodities Canadians need.
- In another report on cbc.ca, the "Black Monday" aftermath of the China market plunge may be a grave cause for concern for other markets, however experts are expressing a difference for the Vancouver real estate market.
Former TD Bank VP Tung Chan was quoted as saying "The Canadian dollar has depreciated quite bit vis à vis the RMB. That makes it more favourable..I've heard people bidding up real estate because their money goes further because of the exchange."
He continued "The trickle down effect to Vancouver would be minimal..We expect to see a slowdown, but not of people selling and liquidating assets (in Vancouver). If the economy in China is bad, people send their nest egg here because it's a safer place. If the China stock market is booming, they send their extra money here."
