Listed companies should invest in real economy not real estate

STATISTICS SHOW THAT the total value of investment properties owned by the 1,680 listed companies in China exceeded 1 trillion yuan ($146 billion) in the second quarter of this year, reaching a record high of 1.05 trillion yuan. The figure has risen steadily for nine consecutive quarters. Beijing Youth Daily comments:

A looming concern is that once the housing prices fall, the companies that own large amounts of investment properties will see a dramatic decrease in their revenues, which will probably set off a chain reaction leading to a stock market disaster.

Sure, it is unfair to point the finger of blame at these companies speculating on the hot housing market, which is legal and profitable. But if the real estate market has been the only powerful engine beautifying these listed companies' balance sheets, the economy's unbalanced structure and lack of vitality and sustainability are self evident.