Chinese Economy Real Estate


Wrote about it in detail

To begin with, we decided to limit liquidity flows into the sector by setting criteria for the debt burden. This has led to liquidity problems for indebted developers, including an exacerbation of the Evergrande crisis. Along the chain, those developers who formally corresponded to the “red lines” also suffered — Kaisa and Shimao.

The volume of capital expenditures of developers is also falling

This is especially important for large cities, where the ratio of housing costs to household incomes is one of the highest in the world.

So we set out to save the situation.

This, of course, will also affect GDP growth.

Therefore, it is likely that China next year will be forced to resort to a) further easing conditions for developers, b) stimulating the economy, c) measures to further ease the monetary policy.

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