Do you know that between 90% and and 95% of people in China own the homes they live in? Because that sort of changes everything about the conversation.
The CPC incentivized the creation of ghost cities as part of their plan to get ahead of housing demand, which seems to have been successful considering the ghost cities have filled up.
Yes, there have been people in China that wanted to use housing as a speculative investment, which is what American economists believe everyone should do. But the CPC doesn’t govern based on what’s most profitable for a small group of speculative investors, so they have been popping their own housing bubble and both American economists and Chinese speculators go to Western media and proclaim how broken the Chinese economy is.
And still, 90% to 95% of Chinese people own the homes they live in.
The use of property as investment in China, last I heard on the subject, is largely because of the lack of other investment vehicles as well.
Makes sense, right, since they’re a country run by a communist party? The reason there aren’t asset classes to invest in for retail investors in China is because China isn’t focused on creating a speculative investment market to produce a path from working class to bourgeoisie through passive income, pump-and-dump schemes, insider trading, or dumb luck.
They’re focused on ending poverty and meeting the needs of a billion people.
Honestly even with the community land trust model that real estate has in China (the land is actually leased from the state) that is a really awesome metric.
Do you know that between 90% and and 95% of people in China own the homes they live in? Because that sort of changes everything about the conversation.
The CPC incentivized the creation of ghost cities as part of their plan to get ahead of housing demand, which seems to have been successful considering the ghost cities have filled up.
Yes, there have been people in China that wanted to use housing as a speculative investment, which is what American economists believe everyone should do. But the CPC doesn’t govern based on what’s most profitable for a small group of speculative investors, so they have been popping their own housing bubble and both American economists and Chinese speculators go to Western media and proclaim how broken the Chinese economy is.
And still, 90% to 95% of Chinese people own the homes they live in.
Makes sense, right, since they’re a country run by a communist party? The reason there aren’t asset classes to invest in for retail investors in China is because China isn’t focused on creating a speculative investment market to produce a path from working class to bourgeoisie through passive income, pump-and-dump schemes, insider trading, or dumb luck.
They’re focused on ending poverty and meeting the needs of a billion people.
Honestly even with the community land trust model that real estate has in China (the land is actually leased from the state) that is a really awesome metric.