3 ms·
~90% of people in China are homeowners [1]. China's investments are extremely disproportionately R/E compared to other countries (70% vs 35% for the US) [2]. T
by onlyrealcuzzo 5y ago
~90% of people in China are homeowners [1]. China's investments are extremely disproportionately R/E compared to other countries (70% vs 35% for the US) [2].
The CCP has immense pressure to prop this bubble up, and they have many options:
* Lower lending standards (you need to put 25% down to buy a house in China, but only 3.5% in the US)
* Lower interest rates (mortgage rates are negative in some parts of Europe, but ~5%+ in China)
* Mortgage interest deduction
[1] https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7546956/#:~:text=Today%20China%20is%20a%20country,et%20al.%2C%202020 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7546956/#:~:tex...).
[2] https://fortune.com/2021/12/02/chinese-real-estate-investing-home-ownership-evergrande/#:~:text=China%20is%20a%20nation%20of,%2C%20that%20share%20is%2035%25 https://fortune.com/2021/12/02/chinese-real-estate-investing....