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Chinese government should offer hard guarantees that all properties would eventually be completed, and at the same time that bad lenders may lose theirs. In Ru
by thriftwy 4y ago
Chinese government should offer hard guarantees that all properties would eventually be completed, and at the same time that bad lenders may lose theirs.
In Russia it's quite common occurrence that a very late project by a failed developer is eventually completed and the lenders get their apartments at last, after regional government intervention.
In China it should be even simpler as the money never leave the escrow account. I wonder if there are un-escrow provisions if developer fails to deliver - in theory there should be no risk at all.
- lazide 4y agoWhy should they?
- thriftwy 4y agoI assume they want to have their economy, their real estate market, their developers and their banks mostly intact. But if they don't, forget what I've said.
- lazide 4y agoThe Chinese gov't can have that (at some level) without doing a giant rescue of everyone. If they want it to keep growing, sure they can do that, but the problem is they let it keep growing too much already.
- thriftwy 4y agoWell, if Chinese government has set up this bubble it is its duty to figure out how to pop it safely.
- lazide 4y agoAh, well i’m not sure their idea of ‘resolved’ meets any definitely of safety for the parties involved. They also don’t seem like the type that has the same definition of duty you’re likely implying. It’ll be interesting to see what happens, that is for sure!