Hard to say. Real estate has been weird in China for years since it’s one of the few investment vehicles available to the masses. A collapse domestically could even push those with the ability to do so to move more of their money into overseas real estate, which could have the opposite effect. Regardless, it’s a bad sign for the Chinese economy generally, especially given that Evergrande is only the first of what’s likely to be a wave of real estate industry bankruptcies.
I think they have fairly strict monetary controls to prevent that.
I spent a decent amount of time in China before COVID and the amount of semi finished husks of buildings was alarming. They definitely over-built and the piper is finally getting paid it looks like.
Hard to say. Real estate has been weird in China for years since it’s one of the few investment vehicles available to the masses. A collapse domestically could even push those with the ability to do so to move more of their money into overseas real estate, which could have the opposite effect. Regardless, it’s a bad sign for the Chinese economy generally, especially given that Evergrande is only the first of what’s likely to be a wave of real estate industry bankruptcies.
Was just going to say this. This will just shift money away from Chinese RE, probably into RE in the West.
I think they have fairly strict monetary controls to prevent that.
I spent a decent amount of time in China before COVID and the amount of semi finished husks of buildings was alarming. They definitely over-built and the piper is finally getting paid it looks like.