The fallout was that the Chinese government bought the bottom and all the wall street dipshits than invested in the stock lost their money. The Chinese government has always posited that speculating on the price of housing is a social ill and they've always pulled stunts like this to curb companies that try to start this hype cycle. This time western investors lost money so that's why we heard so much about it.
Can’t wait to see in 2030 when China has achieved a 100% homeownership rate for adults with all the affordable housing.
You read the news on your phone in your shitty apartment you share with total strangers (if you’re lucky) in bumfuck nowhere addressing this. And what greets you is a picture of a pouty Mr. Monopoly with a tear rolling down his cheek as the headline reads. “Why does China hate real estate? Authoritarian CCP just killed the housing market now no one can build wealth off their investment again!”
seriously why do journalists even like, go to uni when all thats required of them is to pump out stupid shit like this. Do these people even understand how stupid they are?
The year is 2030, China has ended homelessness. Everyone at least rests comfortably in their own 1bdroom.
You begin reading the news on your phone in your 3k a month studio you share with roommates in bumfuck nowhere. It’s a WSJ article about how China solves homelessness.
“China’s housing market is officially dead. How will anyone build wealth now?”
Directly under it is a drawing of Monopoly Man all pouty.
The government has been pumping the entire economy through home equity for 90 years so that boomers can afford to buy more trucks, and I'm supposed to think China's housing market is "irrational".
Foreign investors tried to short the bankruptcy and invested billions expecting China to bail the real estate company out and pay everyone. China said fuck off and kept the investors’ money and let the company fail. They also prohibited foreign investors from owning critical Chinese assets that were made available from the bankruptcy
As for the normal citizens, there was some news that the government forced the company to use its remaining funds to continue construction as far as possible and ignore the investors demanding a payout. I’m not sure what happened beyond that though.
At the high level, the Chinese government bought all the bad debt and closed down some of the largest construction firms. It's a managed transition from the high rate of building they've been doing the past two decades to a more maintenance-focused construction industry as demand tops off.
I wish I knew more about how this effected people on the ground. I want to say that houses that have already been paid for are being built at a loss under state supervision, but I really have no idea.