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filoria@lemmy.ml to World News@lemmy.ml · 11 months ago

China Rejects $1 Trillion Housing Rescue Plan Pitched by IMF

www.bloomberg.com

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China Rejects $1 Trillion Housing Rescue Plan Pitched by IMF

www.bloomberg.com

filoria@lemmy.ml to World News@lemmy.ml · 11 months ago
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China Rejects $1 Trillion Housing Rescue Package Proposed by IMF
www.bloomberg.com
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Chinese authorities have rejected a proposal made by the International Monetary Fund to use central government funds to complete unfinished housing, dealing a blow to hopes for more forceful support to an industry that’s been a major drag on the economy.
  • LarkinDePark@lemmygrad.ml
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    11 months ago

    Why did it crash like this though? Its really hard to find truthful information about this housing thing.

    • carl_marks[use name]@lemmy.ml
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      11 months ago

      The quick answer is because the housing market was used for speculation and was causing real estate prices and rents to rise. China introduced “three red lines” policy to mitigate this and let the housing market crash and let the billionaire CEO Hui Ka Yan (and mostly foreign Investors) hold the bag

      • HobbitFoot @thelemmy.club
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        11 months ago

        There were other positive feedback items happening as well, including local governments relying on development as the major tax base.

        China is also likely to see a drop in infrastructure investment in the next generation, so having some of these companies collapse isn’t seen as a major issue in China.

    • davel@lemmy.ml
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      11 months ago

      Because housing is for living in, not for speculation or asset price inflation.

      • Oct. 2017: China’s Xi says to maintain principle property is not for speculation China will maintain the principle that houses are for people to live in, not for speculation […]
      • Mar. 2024: China’s housing minister says real estate developers must go bankrupt if necessary
    • SSJMarx@lemm.ee
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      9 months ago

      deleted by creator

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