Excellent video explaining the reasons behind China's real estate crisis. It would be fantastic if you could also discuss the global implications of this issue.
@@vitsboy46 Foreign public and private entities such as sovereign wealth funds, pension funds, equity funds, banks and insurance firms have invested heavily in China real estate. In addition, during a crisis, China might have to dump even more US treasuries. So I suspect a crisis to quickly morph from a China crisis to a global crisis.
I love reading the newsletter and regularly watch each of your video. While I learn something new each time, this video is peak finshot. It was like reading a very well written book. My mind is blown, max respect! I have read a lot on the China property crisis, but this video beats them all.
Bro, i came into the video expecting bias opinion since you're an Indian, but as it seems you're done your due diligence and offer facts to the whole crisis China is experiencing now. Kudos to you. I do hope the chinese government knows what they are doing, because they partially orchestrated this whole crisis.
As much as I loved the research, the entire video explains the problem with only ONE Sector of China which maybe 20-25% of their GDP. The 75% of the GDP is intact which is still huge. Even if they make the mess out of current situation and manage to succeed only 50%, that still means doing well approx 85-90% of their GDP. At the end you said, let's see Where China is heading ? No, Real Estate of not entire China. It is just one sector. As I said, even if their plan succeed 50% which is highly likely, they would have their GDP intact to 85-90%. And we all know, if a country like China who has abundance of money and able to almost buy other countries (Sri Lanka, Pakistan, Africa etc), they can bailout the stressed companies in an instance. More so, if the government fears of losing their power, we all know to what extent they or any government can go.
The idea that everyone has a roof over their head with such high rates of home ownership in China greatly obscures the social reality that about 300 to 500 million people in China face. Many families may own a useless flat in a rural city where no work exists. They are more or less forced to migrate inward to get a job where they are not ever given a residency permit and where, moreover, they must pay high rents to live in overcrowded slummy apartments. The exception are those who live in factory dormitories but these arrangements are becoming less common. Meanwhile, apartment prices in the places where jobs actually exist are far beyond the reach of the average resident and financing is very very limited. 1/4 to 1/3 money down and 3 to 5 years max to pay the entire mortgage are common requirements. Imagine that! That's why so many families must put their entire life savings into a home purchase. However, many have been lured into buying flats before they are built. So we see great disequilibria in the Chinese housing market that, due to conditions that are somewhat unique to China, the official statistics on home ownership obscure, even if they are correct (and that is a big if). To put it shortly: there are serious housing SHORTAGES in China in the places where people need to live in order to get a job.
In a country where over 80% already have their own home and the property market is on a downturn, it is certainly very clever to invest ones life savings into even more real estate. Mind boggling, indeed.
China China China. I seem to recall a real estate bubble bursting in 2008. You remember which country was that ? Did that country collapse and disappear after ??
That country can’t collapse because that country currency is dollars . US can print dollar . China can’t print dollar . First have basic knowledge before comment . Every country debt every country petrol payment will be in dollars every country current account deficit is in dollar . So if US don’t have they can’t just print . At most it will give inflation then they have to control it . But China can’t print dollar that’s why for China it’s not easy to come out like US . Do little research before commenting
is it just me who feels like it is the same 2008 recipe with a different flavour? as someone else commented, this is peak finshots. best video ever on the channel. also this video made me appreciate the status quo here in India.
You earned a subscriber! Well articulated, well researched and very informative piece of content. Would love to see more of such content, keep em coming.
I worked with Chinese for 4 years and trust me they are unpredictable. And last year when Evergrande Group filed for bankruptcy it was clear that that downfall of China has begun and it is in no state to grow until it heals its relations with the world, it revives its economy for good. Chinas growth has gone back by 15-20 years. PS: the karma always hits back for people doing wrong things. Example: Corona (Bio-Wars), IndoChina Border war (Land encroachments), Over-Urbanization (Killing Rural Peoples livelihood), Dictatorship (Not to mention about the Brutal Harrassments), Over-Industralization (Polluting Mother Earth), Animal Cruelty (Slaughtering Every Living creature on earth 😢) etc. The list of wrong doings is endless in China.
It's ironic to hear an Indian paying out against the ccp, especially if you recall how the ccp paid out the Indian people when India suffered badly at the hands of covid (wuhan virus) what worse for the ccp is that this guy is right!! Although if you think the property market in china is bad, take a look at the fast train debacle or the belt & road initiative debacle or the massive over spend on useless infrastructure. Oh and i nearly forgot, China's demographic issues are off the scale too!!!
I want to build ghost cities. I told the bank I need a loan for a ghost city. Only for birds and cats and dogs. But they didn't give me the money. Terrible people.
Seems like the Chinese don't have proper regulations in the real estate sector. Whatever regulations they have now is likely to be less than 5 years old. Their issues are fixable had they came up with the regulations at least a decade ago. Probably, the only one thing Chinese government can do is to pump funds into real estate companies and the lenders so that economy doesn't crash. But the costs will be very high. If the government does not intervene, the costs of non intervention will be still higher.
Developers kept making homes fueled on the housing sector thinking more people will buy homes fuels by population growth . But there population is not growing like it used to. This is what happens when you really only on real estate to grow your economy, Canada take notes Canada also depends on its real estate to much.
This is a marvelous video. I am researching the topic myself and I could not understand the link between different events, the government's stance, and the origin story. There is a massive chunk of information all over the place but I am glad I came here. Things have become more structured and I salute the amount of work you put in to get the story to flow. That really is commendable. Great job!
Finshots, there is another factor in the building of all these apartments in china and that is as follows: Most of chinas farms are small family holdings. The government sets the price for the crops grown by these farmers. Several years ago, the government started to pay the farmers less and less on a yearly basis despite the fact that supply and demand had not changed from previous years. The intent was/is to make it impossible for farmers to stay on their land and as a result, they would sell up to the government who would then sell large blocks of land onto their mates who would set up industrial scale farming. The farmers would move to the towns and cities with this surplus housing and buy them as places to live. A win-win for the local governments. There was a problem though, most farmers love living on their land, the lifestyle and therefore did not want to sell. I know this from farmers in the north of china.
Great video, but someone has been watching a lot of Johnny Harris lately... those paper close ups, those close camera shot on face, those quick cuts of news media videos... ahh "inspired" for sure!!
If you would make videos related everything to Indian citizens.... it will create awareness among the young generations who would get Ideas and be creative and making India, "Skill India", looking forward what are you coming for the newer younger innocent 😇 children of India 😍🙏🤗🤗🤗❤️✌️🕊️💃🕺💃🕺💃🕺😎👍You are Awesome and Amazing.... focus on our children 😁
I never miss any article of Finshots, even if it is one year, I keep it unread and when have time, I read it. thanks for bringing such good information to us.
Hey, Excellent Video. I'm a big fan. Been following you guys since early newsletter days. One thing has always made me curious is that I really want to know and learn more about methods and processes of researching such a good video and articles.
Communism has also his advantages and disadvantage. There is a lot more control over resources and its great if stired correctly but in communism we are fuged up if the government makes mistake
I've been reading Finshots since years now, never missed a day I think you guys should make more videos like these, will surely help find a larger audience. Maybe also add ads about ditto in the video like you usually do with the emails?
Excellent video explaining the reasons behind China's real estate crisis. It would be fantastic if you could also discuss the global implications of this issue.
Thank you! Note taken..
Global impact is minimal as most of the investments are internal
@@vitsboy46 Foreign public and private entities such as sovereign wealth funds, pension funds, equity funds, banks and insurance firms have invested heavily in China real estate. In addition, during a crisis, China might have to dump even more US treasuries. So I suspect a crisis to quickly morph from a China crisis to a global crisis.
I love reading the newsletter and regularly watch each of your video. While I learn something new each time, this video is peak finshot. It was like reading a very well written book. My mind is blown, max respect! I have read a lot on the China property crisis, but this video beats them all.
Thank you for the kind words
Bro, i came into the video expecting bias opinion since you're an Indian, but as it seems you're done your due diligence and offer facts to the whole crisis China is experiencing now. Kudos to you. I do hope the chinese government knows what they are doing, because they partially orchestrated this whole crisis.
That’s Finshots for you… stay subscribed!
As much as I loved the research, the entire video explains the problem with only ONE Sector of China which maybe 20-25% of their GDP. The 75% of the GDP is intact which is still huge. Even if they make the mess out of current situation and manage to succeed only 50%, that still means doing well approx 85-90% of their GDP.
At the end you said, let's see Where China is heading ? No, Real Estate of not entire China. It is just one sector. As I said, even if their plan succeed 50% which is highly likely, they would have their GDP intact to 85-90%. And we all know, if a country like China who has abundance of money and able to almost buy other countries (Sri Lanka, Pakistan, Africa etc), they can bailout the stressed companies in an instance.
More so, if the government fears of losing their power, we all know to what extent they or any government can go.
If Finshots made such videos on Indian financial stories, there would be many viewers
Kudos to Finshots team for the valuable content and great explanation from Shrehith !!!
Keep rocking :)
The idea that everyone has a roof over their head with such high rates of home ownership in China greatly obscures the social reality that about 300 to 500 million people in China face. Many families may own a useless flat in a rural city where no work exists. They are more or less forced to migrate inward to get a job where they are not ever given a residency permit and where, moreover, they must pay high rents to live in overcrowded slummy apartments. The exception are those who live in factory dormitories but these arrangements are becoming less common. Meanwhile, apartment prices in the places where jobs actually exist are far beyond the reach of the average resident and financing is very very limited. 1/4 to 1/3 money down and 3 to 5 years max to pay the entire mortgage are common requirements. Imagine that! That's why so many families must put their entire life savings into a home purchase. However, many have been lured into buying flats before they are built. So we see great disequilibria in the Chinese housing market that, due to conditions that are somewhat unique to China, the official statistics on home ownership obscure, even if they are correct (and that is a big if). To put it shortly: there are serious housing SHORTAGES in China in the places where people need to live in order to get a job.
American Champion Sean Strickland just put a beating on Chinese Champion in UFC today.
the citizens purchase power is incredible weak with the losses from the housing scam.
recovery is doubtfully expected in less than ten years.
china should follow india ,where half the populations live in slums .
In a country where over 80% already have their own home and the property market is on a downturn, it is certainly very clever to invest ones life savings into even more real estate. Mind boggling, indeed.
China China China. I seem to recall a real estate bubble bursting in 2008. You remember which country was that ? Did that country collapse and disappear after ??
That country can’t collapse because that country currency is dollars . US can print dollar . China can’t print dollar . First have basic knowledge before comment . Every country debt every country petrol payment will be in dollars every country current account deficit is in dollar . So if US don’t have they can’t just print . At most it will give inflation then they have to control it . But China can’t print dollar that’s why for China it’s not easy to come out like US . Do little research before commenting
is it just me who feels like it is the same 2008 recipe with a different flavour? as someone else commented, this is peak finshots. best video ever on the channel. also this video made me appreciate the status quo here in India.
Thanks Nishanth!
Top notch content. Thanks! Keep them coming, please.
You earned a subscriber! Well articulated, well researched and very informative piece of content. Would love to see more of such content, keep em coming.
They thought they were embracing capitalism or even exploiting it, but they didn’t recognize what they were up against.
CONTENT, EDITING, COMMUNICATION, STORY TELLING, VOICE
EVERYTHING TOP NOTCH 👌✅♥️
glad you liked it!
very insightful video. It would be great if you could make a video on how you go about researching various topics.
I worked with Chinese for 4 years and trust me they are unpredictable. And last year when Evergrande Group filed for bankruptcy it was clear that that downfall of China has begun and it is in no state to grow until it heals its relations with the world, it revives its economy for good. Chinas growth has gone back by 15-20 years.
PS: the karma always hits back for people doing wrong things. Example: Corona (Bio-Wars), IndoChina Border war (Land encroachments), Over-Urbanization (Killing Rural Peoples livelihood), Dictatorship (Not to mention about the Brutal Harrassments), Over-Industralization (Polluting Mother Earth), Animal Cruelty (Slaughtering Every Living creature on earth 😢) etc. The list of wrong doings is endless in China.
Indian Jhonny Harris!
Your voice was more convincing and down to earth sincere when you said about Ditto (in last part of video) than in main video
It's ironic to hear an Indian paying out against the ccp, especially if you recall how the ccp paid out the Indian people when India suffered badly at the hands of covid (wuhan virus) what worse for the ccp is that this guy is right!! Although if you think the property market in china is bad, take a look at the fast train debacle or the belt & road initiative debacle or the massive over spend on useless infrastructure. Oh and i nearly forgot, China's demographic issues are off the scale too!!!
awesome you are, at making this kind of analytical videos.
thanks buddy!
I want to build ghost cities. I told the bank I need a loan for a ghost city. Only for birds and cats and dogs. But they didn't give me the money. Terrible people.
Seems like the Chinese don't have proper regulations in the real estate sector. Whatever regulations they have now is likely to be less than 5 years old. Their issues are fixable had they came up with the regulations at least a decade ago. Probably, the only one thing Chinese government can do is to pump funds into real estate companies and the lenders so that economy doesn't crash. But the costs will be very high. If the government does not intervene, the costs of non intervention will be still higher.
Most helpful and knowledgeable video at youtube on the crisis in china
Developers kept making homes fueled on the housing sector thinking more people will buy homes fuels by population growth . But there population is not growing like it used to. This is what happens when you really only on real estate to grow your economy, Canada take notes Canada also depends on its real estate to much.
Love the content as always. One correction, at 11:26, it should be "systemically important real estate companies..."
And what about the housing crisis in America. If the government hadn’t bailed out the banks there would have been a crash.
This is a marvelous video. I am researching the topic myself and I could not understand the link between different events, the government's stance, and the origin story. There is a massive chunk of information all over the place but I am glad I came here. Things have become more structured and I salute the amount of work you put in to get the story to flow. That really is commendable. Great job!
You are very funny, end of China's dominance, you should rather say it is the end of US dominance !!!
You do understand the Ghostcities *were* the issue right? That was the start of the bubble, the decision that made the problem today inevitable.
They overbuilt, overeducated, and overborrowed.
Sources in description would be great
I love karma
Lmao what are you on about if this happened in india the indian media would justify it and say it’s for the greater good of the people
Vietnam and india replacing china when it comes to global merchandise manufacturing
great video, thank you! Greetings from EU/Germany :)
Great stuff
God bless the USA Hopefully Russia will be next.😂
its one step from hard rock bottom, over and done, never to raise again. history foretold.
Excellent video.. Thanks for detailed explanation!! really appreciative!!
China tdk mendominasi siapapun di Asia ini..!!😁😁
Finshots, there is another factor in the building of all these apartments in china and that is as follows:
Most of chinas farms are small family holdings.
The government sets the price for the crops grown by these farmers.
Several years ago, the government started to pay the farmers less and less on a yearly basis despite the fact that supply and demand had not changed from previous years.
The intent was/is to make it impossible for farmers to stay on their land and as a result, they would sell up to the government who would then sell large blocks of land onto their mates who would set up industrial scale farming. The farmers would move to the towns and cities with this surplus housing and buy them as places to live. A win-win for the local governments.
There was a problem though, most farmers love living on their land, the lifestyle and therefore did not want to sell.
I know this from farmers in the north of china.
Nicely explain 🤞
This is the beginning of the end, hold your breath and count to ten.
Great video, but someone has been watching a lot of Johnny Harris lately... those paper close ups, those close camera shot on face, those quick cuts of news media videos... ahh "inspired" for sure!!
❤ Your videos and newsletter. When China control all media and figures, how did you managed to get this data and explain us in simple way?
It's all in the internet, all you need is a discerning mind to sift through the real data from the false data (mostly if not all from the MSM).
Amazing video Shrehith ! Thanks for explaining the real estate crisis in china in great detail.
Please, please, and please
Don't make a fool of yourself 😭
Crazy. Your video is really informative
Brilliant article mate well done :)
Thank you!
Shout out to Finshot teams..i wished I could like it twice so you could reach 50k subs fast but don't stop it please...very good content !.
Thanks
We're sure we'll get there soon if you guys keep supporting us. Thankyou!
If you would make videos related everything to Indian citizens.... it will create awareness among the young generations who would get Ideas and be creative and making India, "Skill India", looking forward what are you coming for the newer younger innocent 😇 children of India 😍🙏🤗🤗🤗❤️✌️🕊️💃🕺💃🕺💃🕺😎👍You are Awesome and Amazing.... focus on our children 😁
Loved it! Such poignant analysis. Keep up the good work. Waiting for your next video.
Thanks! Coming on this Friday..
Wow, that was a good analysis! Respect
VERY TRUE!MASTER OF PROPAGANDISTS !
Please make video China 🇨🇳 inside .
It looks like too big to fail the chinese edition
I never miss any article of Finshots, even if it is one year, I keep it unread and when have time, I read it.
thanks for bringing such good information to us.
Perfectly explained. Keep the good work bro. Very straight and precise work.🎉
Hey, Excellent Video. I'm a big fan. Been following you guys since early newsletter days. One thing has always made me curious is that I really want to know and learn more about methods and processes of researching such a good video and articles.
Did you guys fire your video team and hire new people?
Thinks look so much better now!!
Love the analysis. Cheers Shrehith!
Very nicely picked up subject and very well explained....love the background music
Superb and fantastic Mr. Please keep this up because the ramifications of these problems are insane.
Great job, quite informative and I appreciate how you explained it in a few minutes. Thank you
Grear video. I think a Johny Harris/Real Engineering type list of sources would be great!
Thank you, Request you to please make a video on its global implication also as china serves as a factory of whole Europe and USA.
Communism has also his advantages and disadvantage.
There is a lot more control over resources and its great if stired correctly but in communism we are fuged up if the government makes mistake
Good one, next time change the cam
No shortage of money to wage war
Loud music and quiet voice
Been hearing this since the 90s
Is India doing better?
"If the words are out, it is less likely to happen" - Market.
Damn Excellent explanation
Why local municipalities of china always broken?
There's a change in aspect ratio of the video, any specific reason behind it?
We’re trying to experiment with all the aspects of storytelling techniques to make our videos efficient and impactful. Glad that you noticed… 😃
@@finshotstv something similar I've noticed in Finshots Daily podcast, moving the ditto promotion from beginning to end in some episodes now.
Yeah it did feel different.. 😅😅
You should link the resources in the video description. Amazing video.
Great Analysis. Make more videos
I have watched many videos on china but this one summed it up in detail
Wonderful analysis
When Indian real estate bubble is going to burst?
Where is indian real estate bubble . Max in 6 cities we have real estate bubble . Outside 6 cities house costs are very affordable
@@jayakishore3032 yes, and many cities lack good infra but real-estate prices are going up.
Plz make a video on portfolio building in 20s
Adding on the list!
@@finshotstv thanks ♥️
Max "Rohan" Maher 🤭
I try to find time every day a Finshot video gets released.
Price of communism
What are the negative/positive effects on India?
Grt analysis… 👍
Nice explanation
That aspect ratio got me 🙃
Best explanation, keep it up 👍🏼
Hi can you please analyse Health Insurance sector
I've been reading Finshots since years now, never missed a day
I think you guys should make more videos like these, will surely help find a larger audience.
Maybe also add ads about ditto in the video like you usually do with the emails?
Damn my bad, ditto was mentioned in the end like usual❤
Literally I got think school vibe here
Amazing video! Thanks
Thank you too!
Better Than all of you previos videos
Lovely video. Thanks for sharing ❤
Amazing video! Subscribed. Love from Australia 🇦🇺
Thanks for the support! 🙌
Good work 👍🏽
India is in worse shape, I believe
LoL your belief to see in India worst shape is commendable . Guys like you are required for India . India will be proud of u.
Could you please make a video on portfolio with long term holding OR profit booking with few examples and it's benefits?
Adding to the list
thank you! @@finshotstv