Fortescue CEO Nev Powers labels concerns about so-called Chinese ghost cities as hysteria, describing the underpopulated cities as examples of planning...

Fortescue CEO Nev Powers labels concerns about so-called Chinese ghost cities as hysteria, describing the underpopulated cities as examples of planning overshoots. The Chinese ghost town phenomenan is a reference to the mega cities - built by the government - that now sit empty as owners fail to find tenants who can meet the rent amidst soaring house prices. Analysts fear the ghost town explosion will lead to a housing bubble burst, as China invests trillions into building infrastructure to spur economic growth. Powers, however, dismisses these concerns as hysteria, describing the towns as an emerging group of second-tier cities that are starting to industrialise and urbanise very quickly. According to Fortescue's annual presentation, out of the 658 cities in China, only 12 new suburbs are labelled 'ghost cities.' This compares with the US, where 8 out of 289 cities face urban decay from population decline. (VIEW LINK)