Its govt direction to banks to provide loans to these sector causing this pick up and this is expected. This is fifth time they have blinked in last two decades and they have to do this. local govt revenues are collapsing due to frozen land sales. There is no option for chinese govt other than bring the real estate genie back. But they will bottleneck soon. As soon as market picks up, real estate loans will take all the liquidity from the system. But RMB is pegged to dollar. So they can increase the loans by only 6% this year. Real estate will take 4.5% of the increase leaving only 1.5% for other investments. Then again they will have to go from red line to blood lines. cycle will get shorter and shorter. So every six months they will have to back and forth soon. There is only two viable path. Either do a devaluation of RMB to inflate the debt or do what america did in 1929. Let all bad investment go bankrupt and write off debt and deposits
@RH-mk3rp Go look at official gdp statistics. If you look at PPP statistics over gdp statistics China's PPP is around 34 Trillion USD while US PPP is around the same as gdp at around 27 Trillion USD. PPP = Purchasing Power Parity. This is because the cost of living in China is massively lower than in the US so Chinese people can build up a large amount of savings. RUclips deletes links.
Oh the lastchang wont like this 🤣🤣🤣
Slow clap 😂
You mean that old coot 😅
Its govt direction to banks to provide loans to these sector causing this pick up and this is expected. This is fifth time they have blinked in last two decades and they have to do this. local govt revenues are collapsing due to frozen land sales. There is no option for chinese govt other than bring the real estate genie back. But they will bottleneck soon. As soon as market picks up, real estate loans will take all the liquidity from the system. But RMB is pegged to dollar. So they can increase the loans by only 6% this year. Real estate will take 4.5% of the increase leaving only 1.5% for other investments. Then again they will have to go from red line to blood lines. cycle will get shorter and shorter. So every six months they will have to back and forth soon. There is only two viable path. Either do a devaluation of RMB to inflate the debt or do what america did in 1929. Let all bad investment go bankrupt and write off debt and deposits
Meanwhile the US gave $1 trillion in interest payments for last year.
China has a even more severe debt crisis. Their Debt to GDP ratio is even higher.
How do you know the US is still the sole superpower #1 country? When it gets compared to China by Chinese people 😂😂😂
@johnchen0213 China's total debt is around $12 Trillion with a gdp of $19 Trillion. US debt is around a $35.5 Trillion out of a gdp of $27 trillion.
@@lolcatjunior Source: trust me bro
@RH-mk3rp Go look at official gdp statistics. If you look at PPP statistics over gdp statistics China's PPP is around 34 Trillion USD while US PPP is around the same as gdp at around 27 Trillion USD. PPP = Purchasing Power Parity. This is because the cost of living in China is massively lower than in the US so Chinese people can build up a large amount of savings. RUclips deletes links.
So that means property markets don’t need support anymore. Is that a good News？