Inside China’s Property Crisis

中国房地产危机内幕

Bloomberg Originals

2023-09-15

8 分钟
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China’s property market is in crisis. Home prices are falling, developers are defaulting and people are angry. The worry is that a total collapse will bring down an already faltering economy. Bloomberg Originals explores how the real estate sector became such a mess and what the implications could be for the global economy. In late September 2023, Hui Ka Yan, the billionaire chairman of beleaguered property developer China Evergrande Group, was placed under police control, according to people with knowledge of the matter. For more on this latest development: https://www.bloomberg.com/news/articles/2023-09-27/evergrande-s-billionaire-chairman-hui-is-under-police-surveillance Get unlimited access to Bloomberg.com for $1.99/month for the first 3 months: https://www.bloomberg.com/subscriptions?in_source=YoutubeOriginals #china #realestate #bloomberg -------- Like this video? Subscribe: http://www.youtube.com/Bloomberg?sub_confirmation=1 Become a Quicktake Member for exclusive perks: http://www.youtube.com/bloomberg/join Bloomberg Originals offers bold takes for curious minds on today’s biggest topics. Hosted by experts covering stories you haven’t seen and viewpoints you haven’t heard, you’ll discover cinematic, data-led shows that investigate the intersection of business and culture. Exploring every angle of climate change, technology, finance, sports and beyond, Bloomberg Originals is business as you’ve never seen it. Subscribe for business news, but not as you've known it: exclusive interviews, fascinating profiles, data-driven analysis, and the latest in tech innovation from around the world. Visit our partner channel Bloomberg Quicktake for global news and insight in an instant.
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  • Deserted shopping malls, half-empty apartment complexes, abandoned construction sites.

  • These are all signs of the crisis that has gripped China's property market.

  • And also, an illustration of how dramatically the fortunes of this sector have changed in the last few years.

  • Homebuyers are afraid of not getting the home that they paid for.

  • The problems China have now are deep-seated structural ones.

  • I think the consensus is already that for China and for property sales may not go back to yesterday.

  • China's property market is in a bunch of trouble.

  • And because property is the single biggest contributor to China's GDP, when the property sector is in trouble,

  • the rest of the economy is in trouble as well.

  • To understand why the property crisis has happened now, you have to go back a few years.

  • In the early 2000s, there was an enormous construction boom here.

  • Skyscrapers, apartment complexes, they were going up everywhere.

  • There was this fundamental belief that property prices could only go up.

  • That belief has been shaken tremendously.

  • And when you speak to people now, there's a real worry that maybe what follows a boom is bust.

  • People can't afford houses now, they're very expensive.

  • If this bubble bursts, it will cause social instability.

  • The privatization of property that began in the 1990s created one of the largest explosions of wealth in the country's history.

  • China's housing stock was dilapidated and low-quality,

  • with many people living in worn-out dormitories or housing provided by their state-owned enterprise or government ministries.