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- cross-posted to:
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Investor confidence in China’s troubled property sector has been rocked again this week by reports that one of the country’s largest private building conglomerates missed interest payments on two bonds.
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“Oh no, it’s the consequences of my misgovernment.”
They are right on the cusp of the 2nd step of fucking around …
Building ghosts cities to hold 30 million people and then not filling them. Who would have thought that’s not a valid strategy for property management?
They are now filled.
Some are, but not all. The point here is building entire towns or entire new city sectors in one fell swoop instead of planning them out and building them in stages so plans can be adjusted as needs inevitably change is a bad idea. It’s things like this that have directly led to the current property market crisis.
Of course if buildings are already there it makes sense to use them, but they might have been able to put something better suited or more economically viable there if they had staggered the construction.
Damn so many tankies on this thread
I have to say that of all things in China for Marxist-Lenninists to be defending, the Chinese urban real estate sector of 2023 seems like a pretty odd choice.
Read up on the concept of “face” in asian cultures. China doesn’t like it when they appear weak or stupid. In any arena.
Happens anytime you mention anything bad and china. The apologists and downvoters come out and play. Same thing used to happen on reddit.
That’s pretty rude. I’m all for critism where it is due but seems like in any article about China rather than discussing the article we use the article to prove our preconceived notion is truth.
Same as I don’t automatically believe any article I read about UK/US/Europe.
They have a tightly controlled economy. The government will do whatever it takes to keep a default from spinning out of control.
yeah there are certain things they can’t do, like magically create population they don’t have. even the BEST predictions, based on China’s own reporting (which is suspected to be very inflated) say they are in for a very harsh reality demographically speaking.
https://www.huffpost.com/entry/china-population-drop_n_63c69f7be4b0cbfd55f616e2
So yes they might be able to handle this current situation, maybe, but they are in for a very rough time of it and they have very few options.
Shrinking population +people buying as many apartments as they could as it was viewed as the only “good” investment (their stock market is a complete joke, filled with scam companies with fake numbers run like ponzi scheme). The real estate market there is due for a wild correction. The housing market in America has been manipulated by greed but at least there arent as many empty apartment buildings. Here people are least rent out their real estate and become slumlords…
