What started three years ago as a crackdown on risky business behaviour by home builders, and then an ensuing housing slowdown, has spiralled rapidly this month.
The broader economy has been threatened, and the confidence of consumers, businesses, and investors has been undermined. So far, China’s typically handson policymakers have done little to ease anxieties and seem determined to reduce the country’s economic reliance on real estate.
“What is happening in the Chinese property market is really unprecedented,” media quoted Charles Chang, who heads corporate credit ratings for Greater China at Standard & Poor’s.
For the last three decades, China’s population has surged, and its people have flocked to cities seeking economic opportunity. The developers couldn’t build modern apartments fast enough, and the property sector became the engine of a transforming economy.
Real estate employed millions and provided a store for household savings. Today, the property sector accounts for more than a quarter of all economic activity.
China’s dependence on real estate was lucrative during its strong phase when it seemed like a never-ending property boom, but today it has become a liability after years of excessive borrowing and overbuilding, as per the media report.
When China was growing faster, the excesses were papered over as developers borrowed more to pay off mounting debts. But now China is struggling to regain its footing after emerging from the “paralysing pandemic lockdowns” its leaders imposed, and many of its economic problems are pointing back to real estate, as per the media report.
هذه القصة مأخوذة من طبعة August 22, 2023 من The Business Guardian.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
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هذه القصة مأخوذة من طبعة August 22, 2023 من The Business Guardian.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
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