Posted on 08/11/2022 12:55:38 PM PDT by SpeedyInTexas
China’s deflating property bubble is imperiling the world’s second-largest economy with effects that could ripple for years.
Home prices are dropping in many cities after a long period of increases, data from Chinese real-estate developers and official statistics show. Sales of apartments nationwide by the country’s largest developers have slumped annually for 13 consecutive months, according to industry-data provider China Real Estate Information Corp.
And millions of “presold” apartments that buyers have paid for remain unfinished, leading some purchasers to threaten to withhold mortgage payments. Home buyers could refuse to pay back up to $370 billion in home loans if their apartments aren’t finished, analysts estimate. Most Chinese banks, they say, should be able to absorb the losses, making a financial crisis unlikely.
(Excerpt) Read more at wsj.com ...
Archived version: https://archive.ph/jqBB2
Their real estate bubble is far bigger than ours was in 08. A dictatorship has more controls over its economy than a democracy does but they can’t hide it forever. They’ve got trillions worth of toxic assets on the books.
Here's a Bill Whittle piece on China's ghost cities:
https://billwhittle.com/chinas-ghost-city-economy/
Chinese workers have invested their retirement money into buildings that will never be occupied.
The construction is garbage and buildings 20 and 30 stories and higher literally collapse all the time.
It's unbelievable.
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