Commentary: Is There a Housing Bubble in China's Real Estate Sector?

Channel News Asia ^ | 21 Mar 2022 | Yu Yongding

[nickcarraway]

Managing China's real estate market involves a precarious balancing act. Getting it wrong could be costly, says a Chinese economist.

Despite strong global economic headwinds, not least from the COVID-19 pandemic, China managed to achieve 8.1 per cent GDP growth last year, its highest rate in a decade. With that, China met the International Monetary Fund’s expectations and far surpassed its own government’s 6 per cent target.

But China’s economic performance is not quite as strong as it may seem, and not only because year-on-year growth figures were flattered by the pandemic-induced trough in 2020 when the growth rate slowed sharply to just 2.3 per cent.

China’s growth momentum was much weaker in the second half of the year (4 per cent growth, year on year) than in the first half (12.7 per cent), owing largely to the government’s efforts to rein in the real estate sector.

[Seruzawa]

China managed to achieve 8.1 per cent GDP growth last year,

So say the ChiComms who lie about everything else.

[BiglyCommentary]

They are trying get out from under the lying thing and reform. They just announced their first covid death in the past year. See...

[BiglyCommentary]

Bernie Madoff got busted because he put out these very consistent profit number every month. It’s not possible to earn consistent profits by selling options and capturing premium when the VIX is bouncing around constantly. So too with the phony numbers from the CHICOMS. Every quarter they would report some consistent GDP number like 6.7 while their customers economies and GDP’s were bouncing up and down? NOT POSSIBLE.