Loading ...China’s Real Estate Crisis: A New Experiment In State Intervention
With China’s real estate stocks down 20% since May can the CCP, in all its centralized power, prevent a full meltdown?
The real estate market is responsible for anywhere from 20% to over 30% of China’s GDP (depending on who you ask). And with the latest meltdown that began with the implosion of Evergrande, the situation just keeps getting worse, inspiring a slew of government interventions beyond the scope of what would be possible in a country like the US.
https://www.zerohedge.com/markets/chinas-real-estate-crisis-new-experiment-state-intervention
And real estate there is not like real estate here.
China doesn’t have a well developed banking system.
So to save, people plow their savings into new property, that they don’t even necessarily occupy.
So in effect, its their ‘banking’ system that’s at risk.
The Japanese also have a screwy savings infrastructure through their postal system.
Is China on a parallel path of what the US went through in the 1920s? Growth without enough adults in the room? Over confident of their ability to steer the ship?