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- เผยแพร่เมื่อ 25 ก.ย. 2023
- Shares in the Chinese property firm Evergrande have fallen as problems in the country’s struggling housing market deepen - affecting the wider economy.
Its mainland unit Hengda Real Estate has defaulted on 4bn yuan (£449m; $547m) of debt, it revealed on Monday.
The BBC’s Analysis Editor Ros Atkins examines the background to the current crisis.
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#China #BBCNews
I believe a housing market crash is on the horizon due to many individuals buying homes above the asking price despite low interest rates. Now, as housing prices drop, these buyers are in risky situations without equity. Foreclosure seems probable if they can't afford their homes. Even selling wouldn't bring profits. This situation will likely affect many, especially with expected layoffs and the rapid rise in the cost of living.
I suggest you offset your real estate and get into stocks, A recession as bad as it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short-time buy and sell opportunities too. This is not financial advice but get buying, cash isn’t king at all at this time!
I just started a few months back, I'm going for long term, I'm still trying to wrap my head around it, who’s this advisor you work with?
It is always a good time to buy a house to live. However, the mortgage should be similar or close to the rentable price. No point paying a $3000 mortgage when rent is only $1500.
As for investment, same principle. As long rent can cover the mortgage and taxes in a popular area, go ahead. It's passive income. Even if the market crashes to half-price , someone is still paying your mortgage.
As for stocks, just buy companies that won't fail. Coke cola, Amazon, Google , Apple , tesla , dollar tree.... these stocks won't be the most profitable stocks, but for sure they will continue to make money. If market crashes, sell when profitable, buy more when losing.
This happened with the 2004 housing boom - home prices were greatly inflated, meaning people couldn't sell later because they owed more on the house than they could sell for. I know quite a few people who bought then, thinking they were making a good investment to sell later, but it's taken until the COVID housing boom for the prices to come back to those original amounts.
To balance out your real estate holdings, I suggest investing in equities. If you're cautious, even the worst recessions can present fantastic buying opportunities. Additionally, volatility can produce fantastic short-term purchase and sell opportunities. This is not financial advise, but you should buy immediately away because money isn't king right now!
You're right. I was able to diversify my 450K portfolio across markets with the aid of an investment coach, and I was able to use high dividend yield stocks, ETFs, and bonds to generate a little over $830K in net profit.
Would you mind providing details on the advisor who helped you? saving for a pension through a corporate program since the age of 18. I hit greater tax along the road, so I increased my company pension with a SIPP (tax benefits). I'm now 50 and would love to expand my finances more aggressively; there are a few automobiles I still want to drive and a few mega-vacations that I still want to take.
You can employ another adviser, but Julie Anne Hoover is my one who provides guidance. She has years of knowledge in the financial markets, and her approach has worked for me in the past, leading to my success. She offers points of entrance and exit for the securities I prioritize.
I located her, sent her an email, and scheduled a call; hopefully, she will reply because I want to start the new year off financially strong.
It's been a rough year with losses from failed banks and government, real estate crashes, a struggling economy, and downturns in stocks and dividends. It feels like everything has been going wrong.
What a terrible year it is…
That is why I work with Samuel Peter Descovich, who introduced me to a better Financial community, a verified agency where I learned how money works and how to create it, as well as free books, courses, and daily lectures.
You also get to meet new people, which was the best decision I ever made.
Thank you so much for the advice. Your coach was simple to discover online. I did my research on him before I scheduled our phone call. he appears knowledgeable based on his online resume.
__You will need a strong FA to help you through the current market turmoil. I've been talking to a coach named Samuel Peter Descovich for a long now, mostly because I lack the knowledge and energy to deal with these ongoing market circumstances. I made more than $220K during this slump, demonstrating that there are more aspects of the market than the average individual is aware of. Having an investing counselor is now the best line of action, especially for those who are close to retiring.
I found his extraordinary resume when I searched for his name on Google. I count it a gift that I went over this remark
As the economic crisis keep rising, one needs to have different streams of income, a well detailed diversified investment portfolio in the financial markets is needed to survive, as well as secure a profitable investment future, Thanks so much Mr Samuel Peter Descovich for improving my portfolio
Considering the current reality of global economic crisis, it is crucial for everyone to prioritize investing in diverse sources of income that are not strongly reliant on the government. This includes exploring opportunities in stocks, gold, silver, and digital currencies. Despite the challenging economic situation, it remains a favorable time to consider these investments.
This is true. Particularly in the stock market. There are several opportunities to generate excellent returns, but such intricate transactions can only be carried out by seasoned market professionals.
Very true, I find myself lucky enough exposed to money management at an early age. Worked full time when I was 19, purchased first home at 28, fast forward time... I'm 50 now, got laid off March 2020 amidst lockdown, a blessing in disguise. At once, I consulted an advisor to stay afloat and with subsequent investments, I'm only 15% short of $1m as of today.
This is impressive. Would love to grow my reserve regardless of the economy situation, my 401k has lost everything accrued since early 2019, at this point, I'm in need of guidance, can you point me?
“Debra Marie Styner” is the coach that guides me, She has years of financial market experience, you can use something else but for me her strategy works hence my result. She provides entry and exit point for the securities I focus on.
Debra appears to be a true authority in this field. Checked out her page on the net, went through her profile and I can say she's superb.
The Chinese economy has been a house of cards for years. People buying 2-4 houses and no one living there is insanity.
China has lots of space for refugeeeees!
Yeah, the amount of empty housing is at least more than a 100 million by now.
The 65 million number is old, and was probably even back then understated.
I have heard even far greater speculations from Chinese scholars.
Anyway, 100 million would mean that China could house the entire European Union.
@@MegaBanne Ms Braverman should make a deal with China.
Chinese citizens have apartments and vacation homes and even backup homes where as many Americans are homeless in the streets.
@@tliew3846 Yes and no. When Chinese move to the cities but fail to find employment and end up homeless, the officials clear them by putting them on a bus BACK TO THEIR VILLAGE. Imagine Americans being forced to house their relatives cos they have nowhere to sleep, but yeah, no homeless on the streets.
All the Chinese Bots getting nervy and feisty here 🎉😂😂😂
yeah so many of them
Residential properties are not bought in the western sense. They are merely 70 year leases.
Cuba has the same 99 year lease
That is why they buy up property in US cities and Canada instead It's a huge problem, average middle class Americans have to compete with Chinese billionaires for a place yo live.. Along with Air BNB taking units out of rental market.. it's a cluster fvck for those needing housing.
@@Eidelmaniait's one of the few ways they can legally move their capital abroad and diversify away from the Yuan.
@@mcgmcg2792f*ck them. Hope they get rekt over there.
they want us in poverty.
In light of the impending recession and the fact that inflation remains above the federal reserve 2% target in this time of conflicts and war, several leading market analysts have expressed their views on how dire they believe the economy will be, next recession and how far stocks may go. I need advice on what investment to make because i want to build a portfolio for my children that will be worth at least 800,000 dollars
There are many interesting stocks in many industries that you could follow. You dont have to act on every Forcast. So i suggest you work with a financial advisor who can help you choose the best time to buy and sell stocks or ETFs you want to purchase.
Only a good FA guide will be enough to guide you through the current market volatility. I've been talking to an advisor for a while now, mainly because i don't have the experience or stamina to handle these recurring market conditions. The fact that he made over $30,000 proved that there is more to the market than the typical person is aware of. The best course of action now is to hire a financial consultant, especially for people who are nearing retirement.
Wow, would you mind telling me how i can use your service to get in touch with this financial advisor?
His name is Derrick Alan Sands.
He has been providing both entry and exit points for the values i focus on. You can make a quick check on him.
I was initially feeling skeptical to work with him but decided to give him a try and He really proved himself.
What then does he stand to gain in trading for people?
He charges 30% commission on the profits made after each trading session.
I spent a decade in China and told my friends this was going to happen years ago, but none of them believed me. In this case, I hate being right but I wish they had listened.
Like the government statement at the end, they just think they'll survive because they've seen great growth the last 20 years but they grew too fast and are coming down just as fast.
How could they not listen to the simple public information known as facts used by logic and reasoning?… lol
Listen to whom? You?
@@koonchaufung7232 Yes that's what he said. What part is confusing you?
@@loot6the part where he had to listen to anyone who isn’t named Xi probably.
The statement "How the Fed destroyed the housing market" is an oversimplification of the complex factors that contributed to the housing market crisis of 2008. While the Fed's policies may have played a role, it is important to consider the wider context and multiple factors that led to the crisis.
Investing in the stock market can potentially be a good way to grow your wealth over time, but it is important to approach it with a long-term perspective and a well-informed strategy.
@@RobertCooper03 That's fascinating. How can I contact your Asset-coach as my portfolio is dwindling?
@@RobertCooper03 Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
The commodification and financialization of housing is an evil scourge on societies around the world.
Yes and when a communist country adopts the capitalist model look at the mess
You don't say! Surely this is the first and last time in history that disaster followed when all Chinese people decided to do one thing at once.
They should impose a 4 home policy
The real lesson here is that trying to fund nearly the entirety of government spending with speculative land banking is not a sustainable taxation model when you hit the middle Income trap.
Greed is one of humans' main issues!
Yes! I think there aren't many human problems which aren't caused or greatly amplified by greed, and as long as the root cause of any problem isn't addressed, the problem will persist.
It’s in our DNA
Yes... We need to accept it and harness it. Understanding economics and Governments' inclination towards malinvestment (subsidising housing that won't be suitable).
We need to simply let people pay their own money or make their own financial arrangements for credit and use that money to buy what they want. If that is all guided by greed then it will guide them well towards a good deal.
As for government we need to scrutinise them heavily so that they aren't doing dodgy deals with developers. Zoning is one the tools that Government wields to guide what is built where. The effect is that we are always too slow to meet demand. Maybe they should use a lighter touch and allow demand to dictate more.
💯
Greed is rational. If you think living in a rational society is scary, try living in an irrational society. There is great utility to certainty.
Some experts believe real estate constitutes about 30 percent of Chinese GDP. The problems of developers dwarfed by the potential collapse of prices of existing homes. Chinese people collectively could lose tens of trillions. Price to income ratios of 40 to 1 in top cities making housing unaffordable and vulnerable to a draconian drop.
Property prices in my city, which is a popular one and one that held onto population growth over the last 5 years, have fallen between 400-600%.
Do not worry China GDP $21 Trillion ❤
Certainly a problem when most peoples only option for financial security is owning property, yikes.
@zakjuly6721 LOL. You forgot that Chinas has a population of 1.5 BILLION people.
China's GDP per capita is $12k, the same as Russia and barely above Mexico's. While the US GDP per capita is a whopping $79k.
@@zakjuly6721 No, it's not and their GDP is declining.
A very good summary of the situation in China.
Now do a story on the factory and jobs situation
I agree. What is the true youth unemployment rate, subtracting those youth who are 'employed' an hour or two a month to take them off the records of unemployed? It's like Covid, withholding the info about the virus when we all could have been preparing, but hopefully this won't really spread globally like the virus did. Transparency is so lacking and it's terribly irresponsible of the PRC.
They should stop ignoring the situation at home and quit saying look over there because China will manage its economy they bailed out the US in 2008 when they bought their $2 trillion in treasury bonds.
That’s not needed
One sentence is enough:
Elon Musk told Chinese entrepreneurs to treat their people better.
Its dumb, China has a surplus of young newgrads with masters and they still choose to make one person work 12 hrs a day, 6 days a week. 72 Hours. Those 72 hours can easily be split between two newgrads into 36-40 hrs each. But the companies are not willing to shell out the money, more people working= propping up the economy = more investments/spending.
BBC is clueless when it comes to China.
Smart Brits avoid BBC.
Investment driven economies are unsustainable. No business can survive customers. Economic policies that focus only on ROI instead of maintaining a consumer base will invariably lead to bubbles that collapse catastrophically.
Not true. What's unsustainable is Keynesian policies, of which china is an example. Keynesians create and incrntivise bad investments, blow up the money supply and encourage high risk debts on the pretense of creating jobs. Without money printing and interest rate manipulation, many investments would fail and bubbles will pop even before they get big enough.
what model is the usa applying to create homeless millions
@@swagatopabloAll of what you said would be true if China actually had any inflation right now. It does not. It has deflation, which can only be resolved through fiscal and monetary expansion to stimulate consumption. The problem is China cannot do this as it would undermine their export driven growth model. So the OP point stands. The growth model is the issue not the policies at any point in time.
@@EgyptConqueror kenyensian non-sense again. Deflation is not a problem that needs to be resolved. Deflation is the solution that forces itself on a country as it's investment bubbles burst.
@@swagatopablo yeah that sounds like a great idea. Let's just let standard of living and consumption collapse completely to please the Austrian School Gods. Surely there won't be unrest on the streets. The problem with Austrian economics aside from the lack of math rigor is the magical belief that economies exist in vacuum totally separated from the political realm. Guess what? You run a deflationary environment long enough and you will get a Franklin Roosevelt. Because nobody other than you cares about the long term credit structure. Or as Keynes put it best, in the long run we are all dead anyways.
This has happened in many countries. The housing bubble.
America 2008. But that was for homes, not investment.
65 million empty homes wow that's insane
but the population is 1.4billion
would solve europes migration crisis, temporarily.
@@chadgtr34 their population will be under 500 million in 50 years, their birthrate has collapsed.
@@asusmctablet9180 thats a good news so many people survive the global warming.
@@asusmctablet9180lmao they will still be 1 billion in 2100 they will only lose 300 million in the next 80 years
The ChCP has been pumping the real estate sector on many ways. It's also cultural for the chinese to save in properties as there are no financial markets. One must also consider the QUALITY of such buildings and houses. They tend to fall appart very early. This can only go really bad for their economy.
I am glad China is one of the few places that have not been financialized.
If I could speak fluent Madarin and can find a job there, I will gladly move.
Its never being a better time to stop buying made in China and start buying made in your country 🇨🇦🇺🇸👍
Amen.
Problem is not much is manufactured in the west.
It’s 2023 and I am still running into this kind of comment. Unless you yourself and your entire community willing to work 12hours a day and 6 days week and at 10 dollars an hour, manufacturing will never come back to North America. If not China there will be Vietnam, India, African countries.
Mexico's manufacturing is growing rapidly. Compared to China workers are younger, more educated, more productive. Now the largest exporter to the US.
I would say the best time was back when we found out they were murdering prisoners of conscience to sell their organs for profit.
Japan experienced the same issue in the 1990’s and that took two decades to resolve.
Explain why evergrande filed for bankruptcy in the US?
Because most investors are from US and europes
... Evergrande is made IPO, Initial Public Offering, in Wall Street, U.S. ...
That's why ccp don't want to bail them out. That's also the reason why western media keep making big issues out of it but hiding the facts behind it.
A house is a safe investment as long as someone is able and willing to live in it. It is worthless otherwise.
I thought supply and demand determined prices? If there is insufficient demand and an oversupply, how come prices are still so high?
Like diamonds. They hold onto them so not to make them
Cheap
They keep them high and bear the brunt making people believe and make people pay more, they will ghost the infrastructure but will not sell low.
I think sometimes it takes some time for the market to adjust
Also, as mentioned in the video, China may do some sort of bailout. This may dissuade property owners from selling right now. This lowering supply.
@@josheastwold5360 what specific price controls does China have related to property purchases?
@@josheastwold5360
Price controls are on new builds second hand houses are down by around 50%, Some builders are offering gold bars to try an evade price controls
The root problem of housing market is the investor. Those people buy and resell house. Sometimes can become 10x the original price (you heard it right). These values are not construction values, but speculation value. It is not real
I think its beyond a housing crisis. Its the whole economy
It's a structural problem.
No, it's not. The economy is fine and stable, it's just slowed down a bit as they are transitioning to a new economy.
it already bankrupt
11.5 million university graduates in China have joined the job market recently, up from 8.3 million that graduated in 2021. And next June a further 13 million graduates will start looking for work in an economy that has stalled badly. Youth unemployment was a problem a few years ago. Now it's a snowballing crisis. They are being propped up by their parents at the moment, but that can't last forever. If a country can't provide enough work for their youth then what will the future look like?
Revolution! Isn’t that what the Communists are good at?
The CCP won’t really be able to pivot that energy to some other source of blame. This probably won’t lead to a political collapse in the county, but people will begin to blame the establishment and its old, out-of-touch leadership.
@@lif6737they’re not allowed to complain in China.
Slaves to producing war machines; revolution
Many are too pampered refusing to take on work that start from the bottom. There are many overseas jobs but they shy away. The military need them but they rather play game with their mobile. Hope they don’t end up their those in the West. The government should round them all up and provide them force vocational education.
Good overview.
Really miss the outstanding "Outside Source" with Ros Atkins.
Cause the Houses that Private Chinese citizens bought were not finished, all the finished one were sold to investors and not inhabited. like most of London New york ETC .. just some portfolio private investment where once in a while they fly in live and go away again.
That's the problem, and this is why the evil western governments want to keep illegal immigration high, so that their properties don't lose value in the future because of low birthrates
Been waiting soo long for this.
I really hope it pops
That is so fascinating 😮 I’m surprised to see this
I see BBC when I see this man.
He is a legend.
Teach me to be clear as you❤
Clear - to the point - and not taking sides. I wonder what kind of a childhood he had.
I do like this reporter
You are an idiot if you are “learning” from BBC. Propaganda channel
I think we should worry about UK housing crisis.
Housing crisis is worldwide Canada, New York and Australia.
UK hasn't built enough new properties the last 30 years and it's even illegal to take pictures or film asylum landing on beaches in the UK who are then put into hotels paid by the UK government, housing stock right across the UK is a problem and some places don't have hotel space.
Those tower blocks Look like a pirate radio stations dream 😂
Those buildings are not attractive at all.
It is difficult to make exact projections for the housing market as it is still unclear how quickly or to what degree the Federal Reserve will reduce inflation and borrowing costs without having a substantial negative impact on demand from consumers for anything from houses to cars.
Its not a 'Housing Crisis', its a Debt Crisis
The UK can talk. We do not have enough housing. We build so called affordable housing but once sold it is no longer affordable.
true...but not the same reason as in uk...NO MONEY TO BUY+PAY A MORTGAGE...OR TO RENT
I've been studying this bubble since 2021. Good & concise summary. Another important thing not mentioned is that property and lease of land in particular is the main function in which local governments raise money to support their budgets.
How about the UK housing crisis😂
Look over there 👉.
How could they not see it coming??
greedy
@@alfredli4032 but... how does it make sense to produce something that is not in demand? Especially billions of dollars worth of real state that is not needed? They should have seen it coming when a lot of people were buying mutiple properties... normally real state is the most expensive thing people buy in their lifetime, taking years of their income to pay for it. How could they not see the red flags when people started financing multiple loans for multiple properties? Especially after the 2008 subprime crisis. This crisis is so well documented and explained by now that even me who are not in economy of finance industry can understand the bs of this approach.
Werd Chinese bots not making any sense. 😂
lol true
Fatburgers and paid western agents are making sense?
You CIA bots are everywhere.
Are we surprised when you build complete cities where No One lives in them. Duh
How's US and UK housing markets?
When you see people buying multiple houses....and this is how easy money and speculation often end.
Li Kia-Shing saw this storm coming and exited the Mainland China real estate market with buckets of cash.
Where there becomes desperation comes war. Worrying times
That's why the US has been at war 93% of the time - 227 out of 245 years - since its founding in 1776. i.e. the U.S. has only been at peace for less than 20 years total since its birth.
what's an example?
In a normal dictator that would be the case; however, China is not an ordinary dictatorship and growth, while being reverse, is not being forgotten. China isn’t Argentina yet.
@@dywang32 WWI and WWII immediately come to mind.
Between 1964 and 1973, the US Operation Barrell Roll resulted in 260 million bombs being dropped on Laos, making Laos "the most heavily bombed nation in history."
Where did they borrow from? If international wouldn’t this then effect other markets ?
Chinese banks and Chinese shadow banks. Most will go down with the builders as they default. Joe is right its a shit show
They borrowed it against the properties they lied about having built previously. When the Western investors checked the actual plots, they realised they had been scammed.
That is why the global deby quadrupled this year.
*CHINA caused that ALL and will pay back NONE OF IT.*
What's crazy to me is there is a huge shortage of construction sand and here China is blowing up huge concrete structures that wasted a vital resource that's in high demand
Evergrande’s EV company, Hengchi, is already in trouble and looks likely to fold after selling only about a 1000 cars.
It has an EV company?😮
First time to know this
@@loadingnewadsJust to scam for subsidy.
@@loadingnewadspart of the problem.
Cut the apron strings
Even if there was a significant impact to their GDP, we'd never know the true extent. They've been cooking the books for last 30 years.
4% growth in GDP is not bad compared to recession in most of Europe
If it were true but it's not, far from it, put a - in front of that 4% and you will be closer to the truth.
@@sam-gb8pbWho told you that?
Pyramid scheme on an epic scale...
When the housing bubble collapsed in 2008, it cut house prices in half. It was a great opportunity for those with enough cash or credit.
The US and most western nations never had an oversupply problem.
China is way oversupplied.
Oh yeah, Tier 2 cities in China have a 20-30 to 1 price to income ratio. NYC is 10-1.
So people who own a few empty apartments that are worth nothing and that nobody wants can buy more? Are you a Chinese economist? 😂
what doe that mean?@@HKim0072
@@HKim0072 2008 was an oversupply problem. Although nowhere near the scale China has now. That's an interesting point you make about the price to income ratios. It's fascinating that prices are so high despite such an incredible oversupply. I don't think this has ever happened before. It seems to defy logic
Building to meeting housing demand with the lowest birthrate in human history is an epic central planning failure. The savings of a generation has been squandered on substandard housing project. One (male) child policy comes home to roost in empty uninhabitable nests.
Sweet!
Beautiful 👏
If China only depends on housing profits for its national and local finance,
now must diversify its financial resources to meet national demand.
Canada needs several million homes immediately. China should start shipping some of their ghost cities here.
China's building standards will not get a passing grade in Canada. lol
Canada should start shipping the Chinese themselves who bought Canadian property, back to China. Problem solved.
You would think growing enough food would be the bigger problem for 1.4 billion people
I also hear hundreds of banks failing
I've seen TH-camrs covering this story for what seems like years, but it doesn't feel like the BBC has said much until very recently, or went silent about it for a couple of years at least.
That is because the UK housing market has been even worse
#Evergrande has evolved into #Everdebt.
When is someone going to talk about Canada's housing crisis?
Remember RBS BANK? £280 Billion to save it. In context of China if the state backed these 2 companies the amounts are very small.
You've been going on about this housing crisis for 2 years now, forecasting doom. It's a big problem for China, but they will get through it. Their trade surplus went from 30 billion per month to 80 billion per month. Meanwhile your economy is a mess. Even the DW is talking about what a mess you are. Maybe focus on your own problems.
Ghost Towns as far as the eye can see.
Thank you. Only way to solve this is massive QE with developer & shadowbank bailout. Yuan is going to the dumpster then.
Not to mention the contractors losing out
I find it is weird that you can buy a Chinese property off plan with a mortgage and the builders are still literally constructing the flats around your property and still finishing off building your property.
That also happen in India as well you pay in steps untill the construction is completed, also the cost increases after the construction is completed so investors/ needy buy it even before the construction has started, sometimes the builder just complete the construction with the advance you paid.
Yeah it seems ironic that western capitalist countries have more restrictions on free market property purchases than a self proclaimed communist country
Dunno, it sounds like a pretty standard pyramid scheme..
It's pretty common, the only difference where I live is that if the planned building is canceled, buyers are refunded. There can also be legal challenges from buyers if the project drags on too long.
That's not the weird part. It works that way all over the world.
All these tofu drag buildings are built in floodplains with fake drains.😂
That's not even the worst of it. You can wait and floods will eventually drain down.
What you cannot wait for, is the groundwater to un-radiate itself.
*China is ecologically destroyed and they're just too ashamed to admit this to us.*
All the positive stuff you hear, is absolute lies. Propaganda, from a place that is obliterated head to tail = run by drug addicted slave owning criminals who want nothing but revenge on those who turned out happier richer and better than they did.
The military is divided and weak, there is no strategy and the only allies they have are criminals like NK and Putin's throwaway allegedly-dead-now "Chef" Proghozni. The economy is done, the Yuan is worthless you may as well burn it for cooking things with now. And the worst thing is, you still have the same dictator telling the people that it is THEIR OWN FAULT and that without him they are lost.
China is sliding down the toilet as I type this, with no chance of coming back from it.
How much did you get paid for this comment dipshit?
They should have built this properties in Australia, so big land with so few properties, property prices here second only to HK or SG which is a tiny island
Erm! They've gone back up!
Time for Australia to find another big trading partner, otherwise we are kind of farqued
Australia is already f*cked since Trump told Scomo to cut tie with China. Scomo happily obliged.
Well China must stop home builders from requiring payment in full up front. People should be able to put up a down payment to get an home. Only once the home has been built to the satisfaction of the bank should the home builder be paid for their work. The home builder should have contracts as collateral for loans with the bank to build the project. People putting down huge down payments or payment in full up front results in the company keeping the money and not building the home. That is what caused the crash. So do not pay them until after a final inspection has occurred which is normally required to get a loan from the bank. Right? And no one should have to make a payment until they have taken possession of the home.
its greedy people 😂 , not builders
Never ending growth is impossible in any country
Center on, not "center around"...
The news didn’t mention the quality of most buildings in China….
Not only the construction being a huge debit but the already existing ones are already falling apart.
Bridges, apartments, roads are all “tofu-dreg”
And then they will need to spend more money to fix or rebuild…
You don't know nothing about China. Nothing is falling apart. You are watching too much propaganda. They built the great wall 3000 years ago that's still standing. Their bridges, highways and roads are envy of the world.
If the Chinese market does go boom, let’s just say they won’t be the only ones.
After the CCCP banned Australian coal, they diversified into other global markets, best for global security that China economy bleeds itself out
china forecasted to have 4% growth by Moody's and Citibank. China is economy short term minor problems, long term fine and the housing market needed a major correction from bubble prices.
Not necessarily, this is basically the exact same thing that happened to Japan in 1990. And sure it led to nearly 30 years of stagnation in Japan but *only* in Japan. It didn't really affect the rest of the world that much. Of course, the problem is, the Chinese property sector is a bigger part of their economy than Japan and the budgets of their local governments are tied to the property market so this crisis should be even worse. But still, as long as you don't have money in China, I don't think you need to panic too much.
@@u235u235u235 “forecasted” so they can see in the future or they’re just guessing 😂
@@giantWarioChina is bigger...
I've been through China some stunning places. But there's also cities of high rises, literally 100s, its bizarre, unsustainable..
The Great Wall of Debt.
In Aug 2023, the public debt of the United States was 32.91 trillion U.S. dollars, around two trillion more than a year earlier, when it was around 30.94 trillion U.S. dollars.
@@silveriver9 That is becasue the Debt in China is in the municipal area so some 300% while the US everyone is freaking out about 120%. Americans just over exaggerate .
@@drscopeifyChina's debt are internal they actually have cash reserves they bailed out the US in 2008 with $2 trillion.
@@chrisj2502 Nonsense, China had 700 billion of US treasuries in 2006 and by 2010 this increased to 843 billion so the total change is 243 billion but not 2 trillion that is 1/8 of what you claim.
According to the chinese bureau of statistics, china has almost 600 million buildings in the country, which can housed 2 person per building, if china population really is 1.4B.
... In average a building consists of 50 units or rooms, China population is 1458 million people.
... So, around 1.5b people "must" try to fit such 30,000 million rooms, one Chinese occupy 20 units. That is weird. .....
@@bunyavissuthisorn5909In the countryside a building means a room.
Where's that "it's free real estate meme"
Throughout Asia there are many unfinished Chinese buildings projects and deserted building sites....
Don't worry Pakistan will fully help China.
Lol😂 with what?!?
😂😂😂😂😂😂
Apart of the economic and personal disasters, we should not forget what all these empty houses means for the environment!!
65 million empty apartments. That's an environmental catastrophe! Building (production of cement etc.) is one of the main contributors to climate change...
In China the developers get all the money up front so there is no incentive to finish anything, only to start on the next block.
And minor problem - the state overestimated is population and forced the developers to build 100 million unneeded units - a crash is unavoidable
China is growing - not happy
China is depressed - not happy
Maybe it’s better to pay more attention to our own country. 😂
No one said they are or aren't happy. You appear to have watched the wrong video
ok, chives
I know it's hard but you can pay attention to more than one country
He is another China basher jumping on the bandwagon these days.
How much do you get paid ?
China’s growth is 4.5%, Uk is -1%. And yet Uk is worried about China. 😅
It's because China is still backward and poor country
A steady 10% decrease in growth with a spiralling housing market is much scarier than slight deflation for a country that operates in a trade deficit
GDP growth alone isn’t sufficient.
China is developing country, UK/EU/USA are developed countries.
Look at unemployment rate, what % of peoples investment is in homes, how many apartments are empty.
I think it's all distraction and they are shaping the narrative so they can blame China when western economies tank BBC is just trying to mask the failures of western governments.
No one is worried about BRICS countries 😂
economy wealth is not unlimited. they should have realized this actually backfires.
Oh is it? Look into your own backyard first to clean your own mess! 😢
"Over-valued property market?" ...over-valued country.
Yeah, but rightly valued UK! Go, UK. No housing crisis at all..
So what should China do with this situation? China should seize control of the assets of the company and finish the projects itself and then put it into a trust whereas the payments go to the Chinese government. I would permit those who can prove they paid in full to take possession of their homes after the buildings are finished and put those costs onto the board of directors who took or mismanaged the money. I would seize all their stuff.
What should China do? China should put smarts ahead of patriotism. That’s what China should do. But they won’t.
Ironically that's how this all started. This IS a SOE using provincial government investment vehicles, land zoned out and seized by the government, and loans from state owned banks to the people. The money is quite literally in the government's pockets, and the people have the debt.
Sooooo, you take possession of an empty house in a ghost city.....word is, that because of the housing bubble there is now capacity for 200% of the population. Add to this that China is experiencing population collapse and there is ZERO immigration into the country. 😂