In my earlier blog post “Why property prices won’t be recovering any time soon“, I talked about ‘regime uncertainty’ and how the recent China stock market crash further undermined market confidence. During the free fall between June 12 and July 7, in less than a month Chinese equity investors lost more than $3.4 trillion in equity value. By end of August, investors suffered a total of $4 trillion loss, not to mention China’s subsequent desperate move to devalue the currency. Although foreign investors own less than one percent of Chinese stocks, foreign hedge funds still have billions of dollars at stake through Exchange Traded Funds and other types of investments. The rest of the BRIC economies aren’t doing better. Last week Brazil officially announced that the country is now officially in recession, joining counterpart Russia which is in full-blown recession amid depressed oil prices and massive currency ......