The country’s officials are currently redesigning policy on a vast scale. The government hasits “zero-covid” approach to the pandemic, while simultaneously signalling an end to a crackdown on technology firms. Policymakers are also trying to rescue the property sector. After two years of forcing developers to deleverage—which has pushed dozens to default on debts—regulators are now abandoning many of these measures in the hope of reviving sentiment. This has prompted a measure of optimism.
Companies began rapidly raising new debt in December—a sign that policy easing kicked off well before the government announced the new measures. Local authorities have been lowering mortgage rates, and many are now at record lows. The state’s bail-out funds are targeting unfinished construction. About 60% of homes sold between 2013 and 2020 are thought not to have been delivered to buyers, many of whom have nevertheless started to make payments.
The plan is showing some early results. Home completions rose by 6% year on year in December, after diving 18% the month before. This is a closely watched measure: unfinished homes prompted homebuyers to boycott their mortgage payments last year, as part of a wave of protests. The reforms have been aided by the lifting of covid-19 restrictions. A few weeks before the policy changes, moving about in Chinese cities carried the threat of quarantine.
A few foreign investors have been encouraged by the state’s plan. Firms have almost entirely been shut out of the offshore bond market, where many global asset managers and hedge funds are trying to recoup losses following missed payments. The funds raised by developers fell by a quarter last year compared with the year before.
Source: Real Estate Daily Report (realestatedailyreport.net)
When you have 1.4 billion citizens, and every housing project is sold out years before completion, even you start paying a mortgage a couple years before you can move in, there is no over supply. Try to investigate better.
The solution to China's property crisis : nationalize indebted developers and bring back social housing .
Togawa
You never stop with the China bashing, do you?
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Live updates: China’s troubled holiday season kicks off in Year of Rabbit\n\t\t\tExpert insights, analysis and smart data help you cut through the noise to spot trends,\n\t\t\trisks and opportunities.\n\t\t\n\t\tJoin over 300,000 Finance professionals who already subscribe to the FT. rabbit, mice or horse? I like fish Rabbit is usually cooked like this FAKE news!!!
Source: FT - 🏆 113. / 51 Read more »
China’s drug-pricing policy impedes biotech profits\n\t\t\tKeep abreast of significant corporate, financial and political developments around the world.\n\t\t\tStay informed and spot emerging risks and opportunities with independent global reporting, expert\n\t\t\tcommentary and analysis you can trust.\n\t\t If a price ceiling stops a pharmaceutical company from producing at the profit maximizing level of output, then that firm makes less money. The firm produces at a higher quantity and a lower price where the marginal revenue is lower than the marginal cost. MillerMicro23
Source: FT - 🏆 113. / 51 Read more »
Source: Channel4News - 🏆 27. / 68 Read more »
China celebrates lunar new year as Covid infections hit 80 per cent\n\t\t\tKeep abreast of significant corporate, financial and political developments around the world.\n\t\t\tStay informed and spot emerging risks and opportunities with independent global reporting, expert\n\t\t\tcommentary and analysis you can trust.\n\t\t Good for them. The faster they reach herd immunity the better. How disgusting the topic is
Source: FT - 🏆 113. / 51 Read more »
Source: SkyNews - 🏆 35. / 67 Read more »
Rural China runs short of Covid drugs over lunar new year holiday\n\t\t\tKeep abreast of significant corporate, financial and political developments around the world.\n\t\t\tStay informed and spot emerging risks and opportunities with independent global reporting, expert\n\t\t\tcommentary and analysis you can trust.\n\t\t That’s ok because there are many many things mostly non pharmaceuticals really that work wonderfully on virtually all the symptoms of Covid!
Source: FT - 🏆 113. / 51 Read more »