155

China developer's (Soho China) profit falls 93% in fresh blow to property market (asia.nikkei.com)

submitted 1 year ago by alphacyberranger@lemmy.world to c/world@lemmy.world

11 comments fedilink hide all child comments

you are viewing a single comment's thread
view the rest of the comments

[-] zlatiah@kbin.social 32 points 1 year ago

ELI5 about the Chinese real estate market in general? This is how they got to where they are today:

Investing in China sucks. The stock market is extremely volatile and there seem to be a lot of shady activities, banks get bank runs so you couldn't even put too much money in banks, etc
In contrast, real estate is heavily subsidized by China's state capitalistic approach, so it became a really "stable" investment... because government subsidized it
Because of this, everyone buys or want to buy real estate in China. In fact, people are willing to buy places that would almost never be lived in, because of possibility of appreciation... so we're approaching NFT-level bullshit here
Additional point: because of the above point, Chinese investors would buy real estate even when abroad & the RE market is not nearly as favorable. Obviously this causes some frictions... like a good chunk of Canadian citizen blaming Chinese ppl on raising home prices
Chinese economy is now facing hardship, so the real estate bubble is finally showing signs of leakage in the past few years

I am not an economist and cannot offer insight as to whether this would turn into an 2008 moment... Nevertheless, I am aware that Soho is an extremely well-known developer, and that the Chinese economy is to a large extent built on top of real estate. And despite how much I dislike China, it is one of the world's largest economies, and large economies don't just go belly-up without inflicting heavy damage on the whole world... So this is not good news by any means.

[-] HuddaBudda@kbin.social 7 points 1 year ago

That was a really good explanation of things.

People have been talking about this stuff since about a year ago

Overall it is a bunch of dominoes that keep rippling into China's economy and by extension the US that doesn't seem to be getting better, but circling the drain.

[-] PipedLinkBot@feddit.rocks 4 points 1 year ago

Here is an alternative Piped link(s): https://piped.video/watch?v=YBBnQmRcRI4

Piped is a privacy-respecting open-source alternative frontend to YouTube.

I'm open-source, check me out at GitHub.

[-] akaxaka@lemmy.world 2 points 1 year ago

Good bot!

load more comments (1 replies)

this post was submitted on 18 Aug 2023

155 points (99.4% liked)

World News

38492 readers

3125 users here now

A community for discussing events around the World

Rules:

Rule 1: posts have the following requirements:
- Post news articles only
- Video links are NOT articles and will be removed.
- Title must match the article headline
- Not United States Internal News
- Recent (Past 30 Days)
- Screenshots/links to other social media sites (Twitter/X/Facebook/Youtube/reddit, etc.) are explicitly forbidden, as are link shorteners.
Rule 2: Do not copy the entire article into your post. The key points in 1-2 paragraphs is allowed (even encouraged!), but large segments of articles posted in the body will result in the post being removed. If you have to stop and think "Is this fair use?", it probably isn't. Archive links, especially the ones created on link submission, are absolutely allowed but those that avoid paywalls are not.
Rule 3: Opinions articles, or Articles based on misinformation/propaganda may be removed. Sources that have a Low or Very Low factual reporting rating or MBFC Credibility Rating may be removed.
Rule 4: Posts or comments that are homophobic, transphobic, racist, sexist, anti-religious, or ableist will be removed. “Ironic” prejudice is just prejudiced.
Posts and comments must abide by the lemmy.world terms of service UPDATED AS OF 10/19
Rule 5: Keep it civil. It's OK to say the subject of an article is behaving like a (pejorative, pejorative). It's NOT OK to say another USER is (pejorative). Strong language is fine, just not directed at other members. Engage in good-faith and with respect! This includes accusing another user of being a bot or paid actor. Trolling is uncivil and is grounds for removal and/or a community ban.
Rule 6: Memes, spam, other low effort posting, reposts, misinformation, advocating violence, off-topic, trolling, offensive, regarding the moderators or meta in content may be removed at any time.
Rule 7: We didn't USED to need a rule about how many posts one could make in a day, then someone posted NINETEEN articles in a single day. Not comments, FULL ARTICLES. If you're posting more than say, 10 or so, consider going outside and touching grass. We reserve the right to limit over-posting so a single user does not dominate the front page.

We ask that the users report any comment or post that violate the rules, to use critical thinking when reading, posting or commenting. Users that post off-topic spam, advocate violence, have multiple comments or posts removed, weaponize reports or violate the code of conduct will be banned.

All posts and comments will be reviewed on a case-by-case basis. This means that some content that violates the rules may be allowed, while other content that does not violate the rules may be removed. The moderators retain the right to remove any content and ban users.

Lemmy World Partners

News !news@lemmy.world

Politics !politics@lemmy.world

World Politics !globalpolitics@lemmy.world

Recommendations

How to spot Misinformation and Propaganda

For Firefox users, there is media bias / propaganda / fact check plugin.

https://addons.mozilla.org/en-US/firefox/addon/media-bias-fact-check/

Consider including the article’s mediabiasfactcheck.com/ link

founded 1 year ago

MODERATORS

quinten@lemmy.world

NewsAutoMod@lemmy.world

jordanlund@lemmy.world

Tenthrow@lemmy.world

little_cow@lemmy.world

lemmyAtom@lemmy.world

FlyingSquid@lemmy.world