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If the leaks and rumors are true, Beijing stands ready to launch a new and radical solution to the economy’s property crisis – a government takeover. What the authorities refer to as “a new model” would replace the old emphasis on ownership with more rentals and use government funds to buy up bankrupt properties so that in time the government’s role in real estate would rise from 5% of the market at present to 30%. Such an act would surely take the nation back to its communist roots if not quite the days of Mao Zedong. If it would veil the property crisis for a time, it would in the long run do tremendous damage to China’s economic prospects.
Lmao, what "crisis"? That there's a surplus of housing and people are easily able to afford to live? This is what only being able to see things through the lens of profit does to a mf.
The crisis is that bondholders are gonna get rekt 😂
which bondholders?
Evergrande, and the such, bondholders. These real state developers are product of investment funds and banks, which in turn get their money from bondholders.
oh okay makes sense, thanks