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Why the world is worried about China's property crisis

23 Comments
By Laurie Chen and Qasim Nauman

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23 Comments

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@painkiller

Because in the end, China will be fine

LOL, wakie wakie, eggs and breakie. People are refusing to pay their mortgages, companies are refusing to pay their mortgages, banks are scamming their own customers. Sounds fine to you?

The system is collapsing, ON ITSELF, no amount of propaganda can save a collapsing economy. Don't forget the media is strictly controlled by the CCP, and all narratives are CCP endorsed, ie what you hear is 'the bright side'.

This is all before the lying flat generation, ie Chinese youth, the workhorse, the engine of wealth, has basically put up the middle finger to CCP exploitation.

8 ( +8 / -0 )

I hope everyone realises the fallout from 2007 was merely postponed... and the 'solution' exacerbated the problem.

7 ( +9 / -2 )

Coming in to say the world is wrong and this articles are just lies in 3... 2... 1...

Spot on lol…

5 ( +5 / -0 )

I wouldn't pay a mortgage until I was living in the completed unit. At least layaway was a one time payment to hold items, this is some type of white collar crime, possibly FTD at the least, especially since its a recurring payment.

5 ( +5 / -0 )

Unfortunately because how the CCP hides all real data, no one has really knows how bad this problem is.

Time to de-invest in China..

4 ( +4 / -0 )

China's problem is the CCP!! CCP = China's Corrupt Politicians. The CCP is and wants to be in total control they will put the people down before they give up power. Currently there is a power struggle going on and the rich does not like Xi they want him out and he will do everything he can to stay in power even if it means killing the citizen and creating a WAR one they will not win against several world powers!!

4 ( +4 / -0 )

The world should be more than worried. It's looking more than likely the CCP is going to destroy China, or China will destroy the CCP. You already know the CCP won't let the 2nd option materialize, so that means they will start a world war.

Let's look at what HAS happened:

They have destroyed wealth of Chinese citizens.

https://www.theguardian.com/world/2022/jul/19/mortgage-strikes-threaten-chinas-economic-and-political-stability

They have mismanaged the engine of growth - ie the property sector, where people live, invest in, AND prop up the state subsidies system that enable their manufacturing sector to thrive on 'cheap land'.

https://www.bondsupermart.com/bsm/article-detail/a-list-of-26-key-chinese-developers-latest-development-ongoing-update-RCMS_255744

They have caused contagion effects on corporate bond investors.

They have mismanaged covid in trying to promote local vaccines over western counterparts, and that has now lead to mismanagement of business activities as well. They can't let people die, and they can't let businesses suffer, where to from here is anyone's guess.

So the average Chinese feels their compact with the CCP has been burned, the average corporate titan has also been burned by the CCP, and don't forget the tech crackdown either. The CCP have no where to hide, so either they crackdown HK style on mainland China and jail hundreds of millions, or they will need a distraction - WAR. Else they won't survive this decade.

3 ( +6 / -3 )

Yes, what you opined was false, and was without evidence. Does that clear things up for you?

Clear reports expliictly say you are wrong and the problem is real

https://www.vice.com/en/article/93a53v/china-covid-health-code-protest-henan

https://www.extremetech.com/extreme/337330-china-accused-of-weaponizing-its-covid-tracker-to-stifle-dissent

https://www.nytimes.com/2022/01/30/world/asia/covid-restrictions-china-lockdown.html

The police had warned Xie Yang, a human rights lawyer, not to go to Shanghai to visit the mother of a dissident. He went to the airport anyway. His phone’s health code app — a digital pass indicating possible exposure to the coronavirus — was green, which meant he could travel. His home city, Changsha, had no Covid-19 cases, and he had not left in weeks.Then his app turned red, flagging him as high risk. Airport security tried to put him in quarantine, but he resisted. Mr. Xie accused the authorities of meddling with his health code to bar him from traveling.

There, it has been terribly easy to demonstrate this problem is real and you were mistaken thinking is false. A simple search would have let you know since the beginning that the comment was correct, but instead you choose to irrationally believe that anything you don't like must be false.

It is not so.

3 ( +4 / -1 )

along with the US' real estate market impending woes,

Not a well researched comment. Unlike 2008 lenders have been fastidious about vetting borrowers. There are no liars loans or the kinds of adjustable mortgages that caused so much havoc in 2008. The only loans available have been 15 to 30 year fixed rate loans. Home prices are high but there is a vanishingly low probability home values will. The available housing stock is well below demand. The problem today is unaffordability and rising rents. The problem is that so many can no longer afford to buy a home and rapidly rising rents are creating new homelessness. But a repeat of 2008 is not going to happen.

3 ( +3 / -0 )

Seriously, I don't give a hoot about the forthcoming property related meltdown in China - apart from hoping it gets rid of the CCP. Now that, would be something to Celebrate about, Globally wise, and would have a dramatic impact upon Global economies in the long term - assuming a replacement could step in, to stabilize the Country....

3 ( +3 / -0 )

Its kind of demoralizing to see chinese in my coutry living a luxury life just to figure out when i get to know some of them, connected to real estate, that they are very basic people with no technical knowhow or even robust academic degree, just like a mafia like husband in trainees and a karaoke ex wife dumb and with herpes. Hope they blow soon.

3 ( +3 / -0 )

Homebuyers will not pay any unless new homes/houses are handed to them on schedule. Banks and developers will bankrupt sooner or later. Their government is not going to help their biggest debts for the time being. What is left? It is chaos for decades there.

2 ( +3 / -1 )

Once the CCP weaponized the covid infection certificates to quash demonstrations (by magically making demonstrators positive, so they would have to quarantine or be subjected to heavy penalties) a lot of people began to realize the problem was not as limited and easy to solve as it was being promoted.

Seems like only yesterday I was trading posts with a commenter trying to tell us that the Chinese economy was the only economy in the world going ahead in leaps and bounds, completely unaffected by Covid policies or any other factor… hang on, I think it was the day before…

Coming in to say the world is wrong and this articles are just lies in 3... 2... 1...

2 ( +5 / -3 )

Ok, how will China handle it? I see a lot of finger pointing but no solution.

Because in the end, China will be fine.

In light of every country getting hit hard with inflation, along with the US' real estate market impending woes, this is nothing China can't handle, as it has been handling economic related issues (and the Covid situation) during the entire Covid crisis--in which China has been the only country in the world to have positive growth, according to the statistics, while countries like the USA and New Zealand even suffered recessions

2 ( +2 / -0 )

There is a distinctive difference between real estate and mortgages.

How so? They are intimately connected. The proximate cause of the 2008 melt down was the widespread practice of lending on incredibly poorly vetted mortgages. The lenders knew they could sell those mortgages to securities firms that bundled mortgages into securities they could sell. It was a highly profitable business for the lenders and the securities firms. However, when it became apparent that a great proportion of those mortgages were either non-performing or about to become so, we saw the value of those securities fall off a cliff dragging the rest of the stock market with it. That led to a massive devaluation of property. Those conditions do not exist today. Mortgage lending has been much more restrained since 2008. So tell us then how there is a problem for US real estate?

2 ( +3 / -1 )

This analysis suggests the problem is manageable and that China has the situation under control. It is also a good explanation of the Chinese housing market and how China arrived at this point.

https://www.china-briefing.com/news/china-mortgage-boycott-whats-going-on-in-chinas-property-market/

2 ( +3 / -1 )

No source of course for this "opinion".

What is your argument? that you could not find a source for the CCP to be weaponizing the covid measures? or that you think this is false?

Maybe you think this is some kind of conspiracy and the reports are all false?

0 ( +3 / -3 )

Elementary--just pointing out your unsubstantiated opinion

So which is it? you think it is false or you could not find evicence? again what is your argument?

0 ( +2 / -2 )

What is your argument? that you could not find a source for the CCP to be weaponizing the covid measures? or that you think this is false?

Elementary--just pointing out your unsubstantiated opinion

Maybe you think this is some kind of conspiracy and the reports are all false?

Oh, I see where your mistake is. You didn't thoroughly read the comment pointing out your conspiracy theory.

-4 ( +0 / -4 )

Desert TortoiseToday  11:32 pm JST

Not a well researched comment. Unlike 2008 lenders have been fastidious about vetting borrowers. There are no liars loans or the kinds of adjustable mortgages that caused so much havoc in 2008.

Not a well-thought out comment.

There is a distinctive difference between real estate and mortgages.

Two entirely different industries.

-6 ( +0 / -6 )

Why the world is worried about China's property crisis

This has been in the news for weeks but regardless, interesting that it is the world that should worry.

Because in the end, China will be fine.

In light of every country getting hit hard with inflation, along with the US' real estate market impending woes, this is nothing China can't handle, as it has been handling economic related issues (and the Covid situation) during the entire Covid crisis--in which China has been the only country in the world to have positive growth, according to the statistics, while countries like the USA and New Zealand even suffered recessions.

Once the CCP weaponized the covid infection certificates to quash demonstrations (by magically making demonstrators positive, so they would have to quarantine or be subjected to heavy penalties) a lot of people began to realize the problem was not as limited and easy to solve as it was being promoted.

No source of course for this "opinion".

Sounds like a conspiracy!

This imaginary scenario would make a great fictional movie.

-14 ( +1 / -15 )

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