On Dec. 10, NTD News reported that China’s housing market had entered a cold winter, according to the Mainland E-House Real Estate Research Institute.
The total quantity of new commercial housing in 100 cities by the end of November is 521.1 million square meters. It is the highest supply in the past a five-year. Property developers have been under great pressure due to over reserve and increasing debts.
Property Development is China’s economic backbone, and now the industry faces a significant threat.
Current affairs commentator Wang He told the Epoch Times that real estate had slowed down China’s economic growth, contributing to about a quarter of GDP growth, reduced local finances at one-third of total local fiscal revenue, and reduced banks Credit at 40%.
In the end, residents’ assets have decreased 70% in value.
The default of Evergrande Group, China’s largest real estate corporation, is the most famous example, and the housing market is no longer “nine silver ten gold.”
Recently, the Central Bank of the Communist Party of China lowered the Required Rate of Return (RRR) again and poured 1.2 trillion yuan into the market. This is the second RRR cut this year.
According to Xie Tian, a professor at the University of South Carolina’s Aiken School of Business, the CCP’s current RRR reduction is primarily intended to improve liquidity and address the crisis. This is going to happen.