China

2024 readers

11 users here now

Discuss anything related to China.

Community Rules:

0: Taiwan, Xizang (Tibet), Xinjiang, and Hong Kong are all part of China.

1: Don't go off topic.

2: Be Comradely.

3: Don't spread misinformation or bigotry.

讨论中国的地方。

社区规则：

零、台湾、西藏、新疆、和香港都是中国的一部分。

一、不要跑题。

二、友善对待同志。

三、不要传播谣言或偏执思想。

founded 4 years ago

MODERATORS

[email protected]

China popped its real estate bubble and now is promoting social housing (www.scmp.com)

submitted 4 months ago by [email protected] to c/[email protected]

12 comments fedilink hide all child comments

"China's Ministry of Housing asked local governments in hundreds of cities to “vigorously” buy unsold commercial homes and convert units into affordable housing for the working class." -Ben Norton

"Isn't it ironic that the Chinese housing bubble was cited across the West as a "failure" of the Chinese gov when it was in fact created by runaway private enterprise, only now being resolved by Beijing's intervention...?" -Brian Berletic

you are viewing a single comment's thread
view the rest of the comments

[–] [email protected] 0 points 4 months ago (1 children)

There is an issue to watch out for, here. Local authorities don't always get their money from the central government. They may have to find another way to raise the capital. This is sometimes achieved by borrowing against or selling other local authority assets. Doing it this way can empower the banks. Michael Hudson has suggested that this is a contradiction that the CPC hasn't yet been able to resolve.

[–] [email protected] 0 points 4 months ago

True, but atleast unlike the west, the commercial banks in China are all state owned. So, any default on debt by local Governments can be written down or written off.