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China has its own problems, so not sure which portion you are referring to. In China, there is almost nothing to invest in except for houses. The Chinese stock
by yellow_lead 4y ago
China has its own problems, so not sure which portion you are referring to. In China, there is almost nothing to invest in except for houses. The Chinese stock market is filled with scams, and I've heard many Chinese don't dare to touch it. So everyone invests in housing (apartments), and prices go through the roof. Some years ago, the government restricted investment, limiting the number of properties a person can own. So people put properties in their relatives or children's name.
Aside from those issues, recently Evergrande (one of China's biggest real estate developers) failed to service it's debt, and is considered by many to be extremely over leveraged. China recently updated regulation to place stricter limits on real estate developers debt.