China’s economy: Can real estate still underpin the economy under intensive stimulus – BBC News 中文

7 hours ago

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Over the past two months, the stimulus package for the property market has not rebounded as quickly as the outside world imagined, leading the Chinese economy out of the predicament.

In the past five years, the Chinese government has put forward the slogan “Housing is not for speculation”, that is, “Houses are for living in, not for speculation”. The purpose is to crack down on speculative demand and curb the rapid rise in housing prices.

Since then, the Chinese government’s suppression of the property market has continued to increase. By the second half of 2021, China’s real estate will drop to a freezing point, and indicators such as transaction volume and investment amount have even been “halved”. A number of real estate companies represented by Evergrande have also fallen into a serious business crisis.

At the beginning of this year, China was suddenly attacked by the mutated strain of the new coronavirus Omicron. Central cities such as Shanghai and Beijing, as well as more large and medium-sized cities were locked down for a long time. The economic difficulties in the second quarter were comparable to 2020 at the beginning of the epidemic. the first quarter of the year. The difficulty and urgency of revitalizing the economy are getting higher and higher.

Over the past 20 years, China’s economy has encountered difficulties, and the real estate industry has been stimulated to become a “panacea”. On April 29, the Chinese government sent a signal, saying that it “supports local governments to improve real estate policies based on local realities.” Governments around the world have eased restrictions and thrown out various stimulus policies.

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