CHINA in Deep Trouble as Property Prices Crash, Stimulus Increases Risks & Banks Face More Losses

Thanks!

Welcome to planet Earth. BTW, which planet or universe are you and your followers come from??

Another liar going to the lake of fire....have u bother to see the actual data...enjoy eternity in hell rev 21:8

Let them take care of there own country we need to make products for America put people back to work with benefits and good pay

At around 25 minutes "allowing local government to buy properties..." hmmm, allowing or requiring. To be more clear, requiring local govt to buy property they can't afford, with such money as they have raised from property sales to themselves at elevated prices. Seems like a recipe for success...the same sort of success Enron enjoyed.

who gives a crap about commie china.

China has the economy and government of a mafia!! Bullying their neighbors for their territorial waters, bribery to get their people into local politics to protect their criminality.

Dude needs to visit Shenzhen then come back and tell us how much China is in trouble. Not too many pound shops and bookies mingled in amongst closed down shops. Unlike a certain country I could mention.

Joe, the new Gordon Chang.....A doom and gloom China soothsayer...

Even the China market can't get it right. Housing has become so exorbitant that even a 20-30% discount isn't enough. The world is doomed. It's only begun.

Keep lying about Chinese economy we are not listening, you are not the first one

You are delusional. I’ve watched your analysis on China and Russian economics. Anyone that takes you seriously is an idiot. You have not gotten even 1,thing right. Are your subscribers that naive to actually believe your bs analysis? Wow 🤦🏽‍♂️

China will be fine. The housing market is nationalized as well as their banks. There wont be a mortgage or banking crisis in any black swan event. Property prices are simply too high. There is a major disconnect between income to property value ratio. I am surprised property prices are only down 10%; rather it should be down at least 30%.

What impact of the hidden (un-reported) deaths of the millions of Chinese citizens from the Covid crisis also have on the real estate sales problems?

If I lived in China, I’d leave and not look back.

Oh another China collapsing video!! This is what the 10th from you in the past 12 months? By the way the narrative has moved on to over overcapacity now- get with the program Joe 😂

About this time of day exactly 35 years ago I sat in the General Students Committees office with a mug of coffee and we had the radio on when the news from the Tianmen Square in Beijing broke. We had students in Shanghai and Beijing at that time and students from China here.

China does not have any “easy” options to solve its housing problem. Solutions are Short vs Long

On the short, paid for but not completed, developers took $ but did not build at promised. Make unsecured bank loans to finish projects, public gets project as paid for. Developers live for another day and with that comes hope that they will have future projects that profits from which can be used to repay the unsecured loans. On-going entities have a chance, bankrupted don’t. In essence, this is the pretend and extend option.


Longer term solution is to have regulatory oversight of preconstruction funds plus escrow reserved. Developers have shown they can’t be trusted nor relied upon. They blew it yes but then again, who else is going to finish the projects in the pipeline.
China’s developers, banks and government have interlocking ownerships. While good sometimes, it also puts all the eggs in one basket with no check and balances. No firewalls and it can get out of control. Just because it has not occurred does not mean it won’t.

BRICS will eat the west.

What is being left out of this is just how much of this stock will have to be torn down and rebuilt (or permanently scrapped). A lot of this is built so poorly that it simply isn't safe. There are entire ghost cities in China.

TL;DR: The situation in the property developement sector in China is absolutely fascinating, and here's something to put a smile on your face!

Perhaps both in China and in the west (particularly uk) we need to stop thinking of property as investments but rather as residences?

China needs to put an end to the bubble. The fact that China has a RE bubble was completely ignored in this entire video. Rents are collapsing retail. Vendors cannot make enough money to pay the rent and still have a profit.
What China needs to do is level with the Chinese people, spike the interest rates very high and allow the bubble to collapse. They want to preserve bubble prices, perhaps through inflation. But these losses have ALREADY happened. Now they need to be realized. Japan tried the same BS and it ended in 25 years of a "lost decade" What's better? A short amount of great pain or a long amount of lesser pain?

China is fallen and won't recover,

Very good video, I stayed for the panda. I started in the late 80's with a $60,000 house and sold my 3rd house in '08 for $560,000 and $480,000 equity. Medical bills wiped that out but now pay $282/mo. for 20 acres and an incredible view property on a bluff above a beautiful valley and the Cascade Range in the distance. Nuff' said, I am an armchair analyst and love your videos. Go Joe!!!

Good news

Super informative! We really enjoy your reporting, Thanks!

The fallout of China's Belt & Road, that continuing unfavorable business policies & the EU trade decoupling to Beijing can only mean an economic spiral fall big time.

Gosh, how and why will local communities buy property since their main revenue has been coming from selling and leasing land to developers and that has dried up. And where will they get the money to manage property if they do buy it since apparently the central government hasn't been supporting local governments. Apparently the CCP sends GDP goals to locals and locals confabulate to meet the goals on paper to keep heads from rolling. They've been selling/leasing land to do this. Chinese GDP reports are a wish, not a true measure in this scenario. If this is the case, local governments are essentially broke, won't want to buy back their own former land, especially when prices are falling on the improvements, won't have money to manage public housing, won't be able to collect potential taxes. Surely I'm missing a part of the picture somewhere in this plan. If not, local governments are in for more bruises big time.

Joe Blogs, Mr Doom & Gloom, with no solutions!

hi, indonesian here. regarding chinese property quality, the quality of chinese property is actualy equal to the budget received by the construction company. my country had been using some chinese construction company to build some infrastructure that exist from indonesia-china cooperation and the quality is impressive. the key is budgeting since chinese construction company able to build from the most fragile structure to the most solid one

China is a giant with feet of clay

Good

Joe said "people are nervous because prices are falling". Would it be more accurate to say that "prices are falling because people are nervous" that they will be paying a mortgage on a home that never gets completed? This alternate perspective totally changes solutions that will be effective. Abstract economic theory vs. on-the-ground human behaviour.

I am in deep trouble too. I have no money no house I have nothing. Thinking of suicidal. Nothing to look in life. In 2 weeks I be dead. Dead is freedom. Dead is pease.

u kept saying russian economy collapse in the past but it didnt for 2 years. Your prediction all opposite.

I trust our current world is within a cycle of stability and chaos. In time, stability escalates along with its faults.

Commander-in-Cheif and Ultimate Decision Maker:
The Economy

The price they pay for scrap metal still good so they are not in trouble.

Drop the 70 year renewal deal

They will suffer much more when they continue threaten Taiwan. Nobody will invest one dollar in China anymore and all will leave to make not the same mistake as in russia. Xi should overthink his mindset urgently.

CCP should just introduce 0% down and get people in the empty apartments and try to gain their money back from rent

Good for Cathay!!!😅😅😅😅😂😂😂

Greed worldwide.

Best news ever supreme leader communist country’s are falling apart at there leaders continuous lies.

Chinese have been ‘property banking’ apartments for decades as a form of saving/investment for retirement and intergenerational transfer of wealth – many families have multiple apartments, all internally unfinished & empty (China takes occupancy of apartments at lock-up stage & then fits them out). This ‘property banking’ of lock-up stage apartments was seen as a hugely profitable & safe investment by the Chinese baby boomers (who are now retiring), the primary investors, but it was never used as housing or rented out. As such it was bought for their future retirement, to sell to fund their retirement in place of superannuation. So, all these investment properties have remained empty and non-income producing for decades and are actually surplus to China’s housing requirements. China’s housing requirements for first-home buyers is met by purchasing from property developers (they want new not second hand), the secondary resale market is virtually non-existent. This practice has created a demand for investment properties without any idea for there future use. Going forward, if the current holding (warehousing) of ‘property banked’ empty apartments were released onto the market it would create an even larger glut of empty apartments, a full-blown crisis. As mentioned elsewhere, China’s demographics does not look like it will provide the demand for the unfinished property overhang or the potential huge number of empty ‘property banked’ investment apartments.

Furthermore, local governments buying out distressed property developers/ments as ‘affordable housing’, through a form a nationalisation, will actually remove potential low income buyers/renters from the market and decrease demand.

China's economy is what? 😂😂😂 You for real??

Joe Blogs was spreading fake news since two months ago.
☠️Yet another demon demonising China.

It will never work for China as they are crooked as a snake 😊

Communism never works because the higher echelon get more wealthy and the people get the shaft😅