Save time by listening to our audio articles as you multitaskIn an aggressive attempt to cure these maladies, China’s policymakers have created several others. The flow of finance to property developers has slowed abruptly since the government imposed limits on their borrowing in 2020, forcing dozens into default. This has reduced the pace of construction for flats, many of which were sold in advance.
It is not clear this will be enough to solve developers’ woes. The measures will do more to increase the flow of finance and pace of construction than to revive sales. In the first ten months of this year, China’s property firms sold 941m square metres of residential floor space, a quarter less than in the same period last year. Boosting this figure would do wonders for these firms’ balance-sheets and their creditors’ chances of repayment.
Demand for living space in China’s cities will grow more slowly in the years ahead. Having torn down so many old buildings in recent years, China’s bulldozers are running out of targets. The proportion of urban homes without an independent toilet fell from 32% in 2000 to 15% in 2015, point out Mr Wu and Ms Xu.
China covid policy and quashed consumption keep inflation low. It is the only country that is managing the demand side of the inflation equation slowing consumption by stopping people from actual purchases
eCoNoMiSt gOoD
Continuuing to print easy money for the rich by the rich has been a disaster for China and even for Western communities in Europe & America!
That’s hudge
National governments should be fostered not 1 world dictatorship. Let China fail if they are on that path and bring Trump back to the American presidency!