China Had a Plan to Rescue Its Housing Market. It’s Not Working. | Big Take Asia

A music chair game when the music stops, everyone must find a chair to sit on. To their wildest imagination there are 50% more chairs than players.

The amount of capital wasted in terms of what has been spent in the endeavour of creating this mess is absolutely mind blowing. This issue continues to drag down the Chinese economy in the severest manner and will continue to do so for years and years to come. Beside that, so many of the properties are so shoddily built and really have little hope of ever gaining equity for the owners. Unfortunately, it could bring the whole house of cards tumbling down. It's just an unmitigated disaster.

Ka-Boom.

A key question is why is US equity trading at > 20x PE when it no longer has economic hegemony. Militarily it cannot take on a likely Russo-Sino cooperation. Lastly, US debts and US$ reserve status is failing. China has demographic, youth employment and housing deflation but still growing 2x of US with annual trillion US$ surplus - this is larger than many states GDP in Europe.

The government is punishing speculators. Let the price fall to a reasonable level. President Xi said - Houses are for people to stay, not speculate.

A complete mischaracterization of the real estate market in China, essentially misinformation designed to miseducate (dumb down) the most propagandized population in the world, Americans.

why do you care about it. Do you really care about China citizen's wellware. or maybe you can collect some of that 1.6 billion antiChina propaganda bill funding

Cant wait for coomberg to have this prefiction being wrong again

Chinese government is becoming more authoritarian and then they're wondering why all the wealthy and investors are trying to leave the country?

What is working over there? 😅

Why should we expect the same leadership who created the problem be able to figure out a real solution?

China is in its version of 2008, The German economy is deindustrialising and their government has collapsed, France is struggling economically aswell and their government is teetering on the brink of collapse, the UK economy is shrinking and entering recession territory and the Federal reserve are talking about only 2 rate cuts in 2025 as if 2.7% inflation rate equates to a booming economy

Insightful thanks.

Maybe don’t buy houses as an investment

Interesting analysis, thank you.

Consistently describes the situation as getting better, but not being entirely fixed. Then saying nonsense things like "no improvement". Maybe China should go into $1 trillion of new debt every 100 days, like the U.S., and pretend it doesn't have any economic problems?

Good analysis!

Bloomberg has been FOS ever since it turned to political espionage rather than focus its attention on economics and the stock market. Don't waste time on its reports.

Let me get this straight, she’s blaming the crisis on the governments decision to stop issuing loans that were actively contributing to the bubble? It was going to have to unwind at some point - the real issue is that the developers had too much easy money and not enough caution.

To be candid it works for the government but not for the speculators who are losing money!