Inflation-adjusted home prices in China have fallen below where they started two decades ago, and the fiscal fallout is hitting local governments even harder than developers.
Unfortunately, in China housing is the only thing they’re legally allowed lowed to “invest” in. There is no stock market, you can’t own land, you can’t buy land in foreign countries (legally). So when their market crashes 20% that’s the equivalent of the NSDAQ, housing, and subsidies markets all crashing 20% in a day, which is like beginning great depression type stuff.
That’s quite exactly the opposite of what’s true actually.
The Beijing Stock Exchange and Shanghai Stock Exchange are in fact stock markets, and they can buy land legally in many countries (there’s no Chinese law prohibiting it at least, local laws in some countries may ban foreigners from buying land). They (their rich, not common people) buy housing in other countries because it’s viewed as a better and safer investment (also because buying a home in China is a 70 year lease)
Beijing Stock Exchange and Shanghai Stock Exchange
just to clarify, wasn’t there a rule that only chinese citizens can invest in chinese companies or sth? except for special permits like joint ventures with western companies etc.
Unfortunately, in China housing is the only thing they’re legally allowed lowed to “invest” in. There is no stock market, you can’t own land, you can’t buy land in foreign countries (legally). So when their market crashes 20% that’s the equivalent of the NSDAQ, housing, and subsidies markets all crashing 20% in a day, which is like beginning great depression type stuff.
That’s quite exactly the opposite of what’s true actually.
The Beijing Stock Exchange and Shanghai Stock Exchange are in fact stock markets, and they can buy land legally in many countries (there’s no Chinese law prohibiting it at least, local laws in some countries may ban foreigners from buying land). They (their rich, not common people) buy housing in other countries because it’s viewed as a better and safer investment (also because buying a home in China is a 70 year lease)
just to clarify, wasn’t there a rule that only chinese citizens can invest in chinese companies or sth? except for special permits like joint ventures with western companies etc.
All those words for lies, wow.
…no? https://english.sse.com.cn/
there’s also a bond market.