You can in London, as the banks only ask for like 5% upfront payment but you’ll be paying for the rest of your life lol and it would be a very tiny place like 30-45sqm
BINGO! Though, let's be fair what does the average person near Mongolia make per year, and what is the average cost of a house there? I don't mean four walls and a roof either, but instead a real house?
Not true, my family member bought a small house with a small backyard in Los Angeles at 8 times his annual salary. In Shanghai that same house would be 40 times his salary.
@@rocketman3770 lets say, in north jakarta where i live, a normal one floor house with around 6x15m size is about 2 billion rupiahs, so not to confusing anyone, juta is million in english, so miliar is billion in english
@@greatndit iya betul bro, di daerah saya tinggal segituan, rumah orang tua, kalo beli sendiri ga mampu, sama ky d video ini kan shanghai ya, kota besar juga metropolitan bgt, pasti hargany menggila jg
It's good that people in China do know what's happening and have basic knowledge about their economy, at least the interviewed ones. In some countries, the amount of ignorant people in the streets is surprisingly high.
Those that do not know probably decline to be interviewed. It is likely AsianBoss likely did not include interviews with stupid answers, unlike comedy shows or vidios that only included stupid answers..
Chinese people are usually well informed and smart enough to give coherent responses. Certainly if you interviewed people in the street from my own country most people would not have a clue what was going on.
I am Chinese. I hope Evergrande collapse Let's hope the government stops bailing them out I earn only 8900RMB (1400 USD) a month in Chengdu But it takes 20 years to buy a house
I really love how street interview in China shows how educated are the people on that land.. 💪🏻 not judging whether their opinion is right or wrong but just hearing their explanation gives understanding to their insightful thoughts
@Julio Lopez Lol funny. I’m American. Don’t tell me you have never seen Jimmy Kimmel’s street interviews and see how smart the average person is. Or Conan O’Brien’s interview clips. Ever seen Are You As Smart As A Fifth Grader? Why do we have shows like this? Inherently, we see and know the truth. The average American is not educated enough.
These are cherry picked interviews, the average Chinese person barely has a grasp of the situation, hence why the country is in this situation in the first place.
I didn't have any information from the citizens in China about Evergrande situation. Thank you Asian Boss!!! It's good to know that there is a place where we can find information about the people, more than the institutions...
people in China don't worry about it . why the west media so currious about it .they think this will make china collapse, LOL, so funny, evergrande put the land to bank for guarente ,then the bank give the money to them. if money not back , bank will take the land . the land in shanghai is huge expensive.
@@MrPeterzhu Bank will get the land which will eventually return to the government. But will the banks close the loans of the buyers who cannot move into incomplete apartment buildings? What about them? "people in China don't worry about it" Yes, denial works wonders doesn't it? Evergrande is the only property developer facing default? Modern Land? China Properties Group? Sinic Holdings? Fantasia Holdings?
@@MrPeterzhu The western media is doing it to further their agenda of slandering China and discouraging investments in China. Basically you can't really find any good news about China in the west. It is information warfare to manufacture consensus about China. If you talk to the average western citizen they would think China is collapsing and many of their own problems are China's fault. This is what the media is working towards so that the average western citizen will support any punitive measures against China be it war, embargo or sanction even if doing so will hurt themselves.
@@MithunOnTheNet Yeah, the bank will auction off the land so that other developer or state enterprise will continue the project. The gov will guarantee the buyer but not financial investors. Many of the over leveraged property developer are going under. Let them be. This is part of the central government's plan to control property prices and debt. Sends a warning signal to others that there are no such thing as too big to fail. You screw up, you pay.
@@Jaytip91 could be in English or Spanish, you always find information about the institutions or big companies but not much about what people (in general) think about them.
That's how it's always been and always will be. Funny enough, communism is supposed to be the solution to that but it always creates the worst wage gaps. They say, "we must suffer a whole bunch for paradise to become reality." while laughing and beating the poor down and telling them to worship suffering itself.
@@Love_N_Let_Live Well, it's simply not true. From the 50s to 70s, China almost had a minimum wage gap. The salary of my grandpa was just 30% less than the top leader of his company. Workers have free medical care, free house but they are relatively poor. They didn't have money and all those fancy stuff like westerners did. Today, life in China is basically the same as many Western countries, esp have huge similarities with the U.S., There are enormous choices and chances to make you rich overnight, meanwhile, a lot of poor ppl are suffering. But, I don't think it has many things to do with "communism". It has been called 'Socialism with Chinese Characters' for decades.
Because its not a big deal! Everyday someone will lose money in their investment ! You do have people jumping out of buildings but thats not the majority of what will happen. Chinese loves to gamble and in China the only thing you want to invest in is something solid like real estate.
@@toomyng9015 It is a huge deal. Chinese are largely unable to invest in anything else. Their access to stock markets is severely limited. The government has herded them into property and developers have built whole empty cities of worthless, poorly constructed buildings. This is a financial disaster for hundreds of millions of Chinese people.
@@CaptainKremmen even without government, chinese are gonna invest in properties anyway, its pretty much part of culture that having property equates to some sort of success or stability in life, Chinese diaspora worldwide have similar views
im sure i am probably just missing something... but it's honestly not that difficult of a subject to summarize and the people who were asked to do so all did a great job, more or less anyway...
@@William-Morey-Baker It was just a joke about her use of Chinglish (Chinese/English). While there are many English loan words in Chinese, “summarize” isn’t one of them.
@@William-Morey-Baker haha,they were just laughing at the girl becasue she used english word when she was interviewing in chinese.i think it could happen in many countries.
Just gotta point out how people seem to exclude Hong Kong when talking about China. The housing prices over there are waaaaay higher than either Shanghai or Beijing (compared to average salaries).
Houses in Seoul is growing at a ridiculous price also. As a South Korean living in Seoul, even I can feel the effect of the increasing housing prices up to 12% these past 9 month. Even Apartments is surging. Moon-Jae-In administration’s measures to prevent the snowballing household debt failed to stabilized the real estate market. Of course this is also the fault of South Koreans opting for “gift apartments,” reducing stiffer taxes like real estates if they were to sell the property. AsianBoss, please do an interview on the current household increases in South Korea.
I think the housing prices in China are insane. I just bought my first house in a third-tiered city in China with the help of my parents. It costs 2.42 million RMB (around 377,829 US dollars) while the average salary in this city is around 1000 US dollars per month. And it nominally is a 141-square-meter house but the actual area you can use is less than 120 square meters.
@@monamilkis4103 Racist. It's the Chinese government, not Asian or Chinese people. Most Chinese citizens have even _less_ say in what their government does. They are powerless to protest. You get to vote. You get to write nonsense UA-cam comments and no government minder comes knocking on your door to re-educate you. Get real
@@kky-jd3xj people that are interviewed do not necessary have the correct information. The news would also be based on the ppl they choose to interview.
Most of the Chinese here interview answer surprising well and not ignorant. In any big city the properties price are well beyond the annual wages can support for most common people staying. Look at New York, Tokyo same issue. Hence it up to government to have policies for public housing scheme for affordable house and not driven by speculator housing price.
The property valuations in China are very different than New York for example. In New York the real estate is about 10x income compared to about 40x income in China. So real estate prices would need to fall 75% to match the ratio in New York. I’m not saying they will or won’t but pointing out the comparison to New York is a poor one.
In 2019, Evergrande was separately warned by relevant authorities due to its business and debt risks. In 2020, Evergrande touched the “three red lines” of real estate companies' debt problems and wealth health drawn by the authority. Therefore, it was forbidden to bid for new land and apply for new loans, and the high turnover& high debt model instantly collapsed. The government has now required state-owned& local-owned enterprises to take over the ongoing projects, and ordered Xu to use personal property to repay debts. No one is too big to fail.
But what if the entire Chinese reap estate market collapses? What about all these people who were tricked by these massive real estate scams? They will all be hurt, and the government watched the bubble grow over years
@@ArchesBro The government didn't just watch the bubble grow. They actively pumped it up higher. 40% of local government budgets in China is from government real estate shell companies.
You say that state and local enterprises have been ordered to take over the projects. It would seem you are confirming the communist nature of business. In a free market, Evergranxe would have to negotiate with these businesses (and without government assistance) to take over on mutually beneficial terms. If unable to do so it would have to cancel them and either refund the buyers or deal with legal consequences of Breach of contract.
President Xi said: House (properties) is for living, not for speculation. Those who got burnt deserved it for speculation. Same as the stock market. Chinese government will not Bail-Out Evergrande to serve as a warning to others.
@@yigesbg8145 oh. What about India?? It even struggles to feed it's own people and on plus side it a democracy a superior way of governance according to you
The comparison with Lehman Brothers is bogus. Lehman's debt was twice as large. Lehman was an investment bank, with connection to almost every other investment bank in the world. Evergrande's debt is mostly in China. Since China is not an open economy, its banks are not tightly connected with those of other nations. The amount of its debt in foreign currency is not that large a percentage and in terms of those overseas markets is not significant. One thing it does have in common is the rating agencies. They failed to downgrade the debt in time for people to take corrective action. This also happened with Lehman Brothers.
@@pacifiquetumu9650 I didn't say there was no borrowing abroad, just that is is not a significant percentage. Also, these are "straightforward" corporate bonds. In the Lehman case they were complex derivatives (CDOs) that were sold to everyone.
In fact, Evergrande's cash flow is broken due to crazy land purchase, numerous real estate and poor management. However, Evergrande can obtain funds by selling its gold value land. Therefore, Evergrande's problem is actually not so serious.
There will be a collapse, definitely. It's inevitable. Many house owners and multi-house investors will lose it all. I guarantee that... that's when you'll be glad you owned nothing, a time for you to laugh at those greedy people. Wait and see.. it's coming.
The worry is the domino effect, Evergrande isn't the only company in China to have defaulted...there are at least two more...that's the reason for worry.
@@novelas3536 He is limiting the domino effect to China. I am saying it will be like Lehman Brothers. They just seized another Chinese real estate company's property in San Francisco. Oceanwide, one of China’s biggest real estate companies, lost control of its flagship San Francisco project. Debtholders seized Oceanwide Center, which has been plagued by failed sales, $1.6 billion of ballooning costs and more than $40 million of mechanic’s liens, after two of the firm’s subsidiaries missed payments on $321.5 million of notes. Two debtholders seized the project, along with shares in Oceanwide’s parent, China Oceanwide Holdings International, which were used as collateral for the notes, according to a filing Wednesday with the Shenzhen Stock Exchange. Oceanwide, which has only one San Francisco project, didn’t name it in the filing. Reuters reported the seizure earlier. 😱😱😱😱😱😱😱😱
It is just about whether the PBOC wants to help to bail them out or not . But looking at it , they rather prefer the companies to settle their debts themselves until the last resort . As a non citizen of China I think what the PBOC did was right by trying to get the owner to pay creditors from all its assets even personal wealth . Only after exhausting all avenues the PBOC will step in. This is unlike the USA n other nations where the Tax Payer money being used to bail out ailing companies . Bravo China . The CCP has firmed grip in handling the Evergrande woes .
Sorry , I was wanted to comment another korean video who visited in India but somehow this comment was written here. But still people are liked it. Thanks.
Its really nice to see how well aware, smart and well spoken the public is about such topics. I think ppl often forget the fact that China is not a developed but developing country and has a long way to go. In my analysis, Chinese public don't invest much in stocks but in real estate instead. Govt will partially help Evergrande just bcoz of its scale but not very much interested bcoz govt wants people to now move their investments towards stocks as well. I think some local Chinese economist can tell better though.
One thing that makes this video misleading for foreigners is the concept of "house" in your subtitles. These people aren't talking about the prices of HOUSES, they are talking about the prices of small to modest-sized APARTMENTS. Also, these apartment prices are still way too high outside of places like Shanghai, such as in Taicang, Suzhou, for example. I have friends there and the prices they see are even insane. It's impossible to place a down payment and get a bank loan without extra family support. One friend had to use all his savings, borrow from parents, extended family, friends, and the company he worked for -- just for the down payment! Only then was he able to get the bank loan. And this was in Taicang, not Shanghai.
Real estate is a major problem in most major Asian cities now. Not just China, but also Hong Kong, Singapore, Seoul. Only places with affordable real estate are Taipei and Tokyo now (because low immigration and rapidly shrinking population). The handsome Chinese guy who managed to buy his own place with parents' assistance is really lucky. Nowadays, most people can't do it without the help of rich parents.
The reason it draws so much international attention is Evergrande debt bonds have since been traded and trusted, but once its clear they cannot pay the debt these bonds would become worthless, crashing the economy worldwide. Maybe this will be a good thing because the real-estate market is insanely overvalued thanks to building regulations and speculation. Housing in the modern age is meant to enslave people to the banks but maybe this paradigm would have to change now.
its not big enough to crush the economies worldwide...the scale is incomparable to lehmans. Also, if the analysts were doing their jobs properly they would not have invested in Evergrande bonds in the first place. Their precarious financial position has been a well known problem in China for a long time.
Asian Boss. You are great and i enjoy the topics you cover you really do a great job with the information and questions that are asked the subjects you talk about and the way you present them are professional.. Great Job thanks
I guess people on the street in Shanghai aren’t that up on real estate company news… Smaller, but still large companies Fantasia and Sinic holdings have already defaulted on some large loans, so even if Evergrande doesn’t default soon, it doesn’t mean things are good.
The news inside China is heavily censored by the CCP, that's why a lot of their citizens don't really have an exact clue of what's going on in their own country. Google, UA-cam, Facebook, etc. are banned in China. The only way for the people inside China to access these websites is if they have a VPN.
the west media is busy with make people believe China is about to collapse,but the reality is what you saw in this video, no one worry about it .this company put the land to bank for garantee, if money can't back ,put the land back . this is quite different from the Lehman Brothers.
@@heinrichhimmler3781 More like STEAL American technologies. Renren is a copy of Facebook, Weibo is a copy of Twitter, Alibaba is a copy of Amazon, the list goes on and on. They tried copying Tesla, but it failed miserably.
Wow, that got off topic fast… BTW, it seems another real estate developer, Modern Land China, recently defaulted on a $250 million loan, so the situation could be worsening rapidly. While I did find responses by people to be interesting, you can see that much of the Chinese economy runs on ignorance.
Buying a house from one's salary is unrealistic. Sad truth. It's like you don't have the right to build a family if you can't even afford a house. The real estate industry has its peak even before pandemic even the agents can make a lot of money just by selling those high-end units. It's indeed a good investment especially for the inheritance of family generations and such. I love the lady in cap perspectives.
it was. in like 20 years ago. a Pack of cigarete is like 5 times cheaper then, and a bowl of meatball soup is 3 times cheaper. but the House Price is 300 times more expensive
If I were from Mainland China, wouldn’t the Evergrande collapse be great? Like imagine the amount of houses that would be sold at fire sale prices. I would be able to buy a house and after Evergrande fully collapses, a year or two passes the housing markets stabilise and I could sell them. Isn’t that what rich people love doing during market crashes🤔🤔🤔
If you are rich and not invested in real estate, this is certainly possible. Or, if you are young and working in a stable sector that will be insulated from the broader effects and don't care about your parents/grandparents/older generation of relatives. But, this might be wrong as China has something different than other countries: I'm not sure any investor would actually WANT a lot of the properties, even if the price crashes. Widespread use of cheap or fake materials, rampant corner cutting on vital building integrity aspects of home building, and lazy labor and construction really poses a risk to these structures withstanding time at all. However, in China and Asia as a whole, real estate is and has been thought of as the 'one true investment'. If the price of homes crashes, so does the net worth of most Chinese people. More than that, it will ripple into the wider economy, and deleveraging is often not a pleasant experience. Commodities will crash as homes are no longer being built as they are no longer as profitable. Growth will stagnate, jobs will be lost, pay will reduce... there's a whole host of other effects.
Ya if you think like an American and gives zero regards as to who and what it might impact. For someone like yourself who has no property sure, but how about your parents, aunts, uncles and etc. Followed by worst case scenario massive unemployment then you have no job no place to live.
The evergrande problems are not so much in their completed units as in their units still under construction. People were buying units with the assumptions they will be built.
You're optimistic about the quality of the real estate you'd be buying. From what I've seen, Built By China structures show signs of aging and degradation alarmingly fast.
Yea and you say that because you know exactly what is going on in china. 👏👏 I"m sure what the western media says about china is the most accurate in ur opinion.
Ok, since u think the people are not well informed enough, u must have watched some media that gives a better explanation of what's going on this matter . Pls tell me which media has a good explanation on this topic so I can increase my knowledge🙏
Its crazy how can an average house cost more in shanghai than in london or new york! Even in london & new York house prices are too high. Its all funny money...
China has a population of 1.4 billion. Everyone wants to own a house in Shanghai. The Chinese have many rich people, so this is the reason for the high house prices in Shanghai. In fact, in some small cities, you can buy a 100 square meter house for 50000 yuan. Note that only 50000 yuan is needed.
@@fadzilhashim.0910 Not in the way you might think. If the Chinese real estate market collapses, Chinese people will lose their investments and need to start over again. Thier labor will be cheap and the global market likes a cheap labor force so more countries will just build up their manufacturing in the country again potentially. That is part of the reason why the entire world setup their manufacturing in China. Low wages, few environmental regulation, and a big market to sell products to. Their monetary policy of a fixed exchange rate with the US dollar also means products from China are very cheap. Ironically, the Chinese economic problems is good for the rest of the world, but not good for China to have grown such a large real estate bubble in the first place
@@ArchesBro Indians also think like you that China has low wages and less environmental supervision. China’s wages are 7-8 times that of Indians, and wages in China’s coastal provinces are catching up with southern Europe. You are brainwashed by Western media propaganda. China is very modern now, and also very clean The conflict between China and the United States focuses on the dominance of technology, currency and finance. Your concept is too outdated
Yes, there will be lots of people in China that's affected by the Evergrande crisis. However, they are still a very, very, very small % of the 1.4b population. And majority of the population have faith their government to deal with it.
I live in Shanghai with a monthly salary of 30000 RMB, but it takes 30 years to buy a house. Why should the government subsidize these terrible real estate developers?
Public being public that doesn't find out the status & situation are the losers (ie Blindly follow the media & rumors). Those that find out & analyst the situation will truly not be affected by the scenario being run by the housing's tailored according to HK & Western system.
In this clip, there are hardly folks (or friends) who had invested in Evergrande. The majority were not affected and don't own properties. The exception are kids who have rich parents.
STOP comparing Evergrande to Lehman brothers. Evergrande is a real estate company. Lehman Brothers was a finance company. Evergrande is mostly operates domestically. Lehman Brothers was global in its operations. Lehman's failure affected many countries, because is operated in many countries. Evergrande's collapse is domestic, and Chinese homeowners will be mostly affected. HOWEVER, Evergrande is only the start. Many other real estate developers in China will collapse, because they operated the same way.
If I didn't remember it wrong, Trump is also one of the shareholders(investors) of Evergrand. Is there any other American politicians and capitalists are involved, I don't know.
@@cosmos69 Trump is an idiot. All of his business ventures fail. IF you know he is invested in a company --- RUN, run as far as you can, away from that company. DO NOT invest in it. It WILL fail.
I am a practitioner in the Chinese construction industry, and I would like to share my views. First of all, China's real estate is constantly hoarding land through (buying land - mortgage to the bank - buying land again). Real estate only needs to be landed, no money is required. The general contractor (construction unit) is responsible for all the expenses in the early stage. When the house is constructed and the real estate company can sell the house, the money will be given to the construction unit in proportion. The price increase cycle of real estate is six years, and prices should increase in 2021. Due to the impact of COVID-19 and the decline in birth rates, the government has suppressed housing prices, and the house cannot be sold. Evergrande Group's capital chain is broken. Evergrande Group has the largest land bank in China. If the price increases normally, it will be a myth.
You forget to mention that they overbuild poor quality buildings. Why does anyone need to own 3 apartments? Yet it is a rat race. Owning property is a status symbol in China. The more you own, the higher your social status. So everyone competing to own as much property as possible. Unfortunately, the quality of the property is not good. Many construction defects that will show themselves in the coming years. It is a house of cards. Eventually, the system will fall apart…
I think this is pretty much the case the world over. NYC for instance the median cost of an apartment or house there is about $917,000 lol. In Manhattan it's around 1.6 million. That's more than I've made in my entire freaking lifetime. I can only imagine how much it is in Shanghai? Inflation is ridiculous & as who could ever afford to buy a house in today's market on minimum wage? 🤔
Compared to Sydney I think Melbourne house prices are way cheaper. Last time I checked house prices, it was more realistic for me to buy a house in Melbourne than Sydney.
Evergrand - liablilites 2% of GDP leveraged 2:1 Average European Bank - liabilities 50% of GDP leverage 25:1 Manufacture crisis for manufactured consent.
@@brandmotivo It already is collapsing. Their stock market is badly bearish, thousands upon thousands are out significantly in property investment, and that's not even accounting for all the floods and blackouts.
Some people always think that propaganda can determine a person's cognition, which comes more from the study of various majors in basic education in schools and requires rational logic.
China has a lot more regulatory control of companies than America does. That is one of the reasons there isn't as much worry. An example of this from 2008 was Canada's banking system was not hit nearly as hard during that fallout even though our biggest trading partner was devastated. Another is simple ignorance of the scale of the problem, while I think a lot of outside media hypes it too much, the Chinese media downplays it a lot if they report at all. I think the solution will end up being closer to what the one guy said. The government will step in, then break up the company, forcing it to sell off some of its assets and divest from other markets in favour of competitors. This toes the line between having a company too big to fail, and a having zombie corporations. You can help them out at a grave cost to them.
As a Brit in Shanghai, I am more informed about the USD-RMB exchange rate than UKP. So much information online is US focused, so prices tend to be presented to us in dollars. We're used to converting between the two to see if we're getting a good deal or ripped off.
Im not from Shanghai but in my country I lived in big city and it wasn’t that affordable to buy a house if you in lower class but as long as you in middle and higher class, you will be fine.
I'm with 10:52... if other companies are doing ok without over spending then it's too bad that Evergrande messed it all up. if they get a bailout then some kind of consideration should be offered to those who STILL want to do Business with them.
@@GoGoPooerRangers China has 100,000 real estate companies. How come a few will affects 100,000 real estate companies and the real estate they involve?
So from her interview of 5 people you think that they know more than Americans, two of them had completely different opinions on what the government would do about Evergrande. How do you know she didn't interview dozens of people before she found 5 that seem to know something?
Being a Chinese, I still find the responses hard to believe. (In the finance industry, obviously I always pay attention to economy/market news. But ppl outside the industry? Just why...)
The debt and fall of Evergrande is not a big deal, which I don't think will cause serious problems. Evergrande is an epitome of real estate industry in Mainland China. It fluctuates with the policy of real estate and It's a living fossil of the history of the real estate, reflecting the process of China's urbanlization. Firstly it should be underlined that real estate is never totally capitalistic, which is not regulated by the market in China and instead is absolutely dominated by the government because in fact the land is owned and sold by the government and the house price is in the charge of the government. The real estate company like Evergrande is the the horse of carriage, of which the goverment takes advantage to boost China's economy. And real estate enterprises are a white glove for the goverment to gather fortune from the people and the scapegoat of excessive house price, whose power behind the throne is actually the government. Nowadays, China's economy transforms and tries to decrease the dependence on real estate. The real estate industry has completed its historical mission in urbanlization of China. So China will just let it go and do nothing in face of the debt crisis of Evergrande.
Yeah. And the housing price needs to come down to boost the financial situations of the younger generation, and the birth rate indirectly. So for the over inflated real estate industry to come down is almost a necessary step in development.
07:50 this guy seems the most informed. The bubble was caused by real estate companies treating their business like ponzi schemes, selling tofu-dreg buildings made from sugar and cardboard as "real investments". And people bought it in hopes they would later sell it for higher price. Thing with such ponzi schemes where its pure speculation and theres no real value on the assets is, the bubble will always burst eventually, prices can't rise forever. Ultimately buildings should be built to be used. A building where nobody lives in or works in is a useless building worth nothing.
Wrong.... not local at all.... 50% of bond buying was from the US. That money hasn't been paid back and interest payments have been missed every week for 7 weeks. China's property market will collapse, More than that, there are 98 property companies in China are with serious problems..... it will bring down the world with it. Wait and se....
@@brandmotivo Doubt it. A few hundred million or a billions loss can be absorbed by foreign bond holders. It just won't be much to hurt the rest of the world. It'll hurt some investors for a quarter or so and will simply be written off. If you are talking about trillions lost to foreign investors, then that will be something. Overall, it's not just not gonna be big enough.
That's why you will never see these kind of interviews from Western media, they don't fit the narrative that Western politicians and media are trying to push.
In most China big cities the normal average income group will never dream of getting a decent aoartments not to mention landed properties . An average of USD1500 salary a month is just good enough for decent living with rented room. To buy an apartment u need to earn easily USD4000 a month in those cities .
@@yigesbg8145 Not true . Those are the years . In the city most will hv at least USD600 a month minimum pay especially when it comes to manufacturing concerned . Those rural areas still command low but urbanisation had helped them to command higher salary . Most workers are given perks n benefits such as free hostel , meals allowance n Incentives . Those Cities n Township Salary Gap are in the range if 20 to 25 percent different n with rural easily 40 to 60 percent different but of course the cost of living in rural is very low compared to Cities level .
@@yigesbg8145 That was the Western narratives n their wishes . Infacts , comparing my countries n many others China n Chinese are doing better than us . The Chinese were lucky enough to go thru this phase which no one will expect. They hv all the infrastructures that everyone dreamt off . No matter how rich or poor they are they still live contently n no faminity n homeless roaming the street. I was travelling extensively in China cities prior to the pandemic n everyone seems busy with their chores . CCP had done great n will only do better in the coming years when it's Chinese concerned . I buevef they will be the role model of the world now where the citizens are getting the best deal from CCP initiatives . They built , they impirivrd, they upgrade n they transform . Every nation are envied n jealous of what the CCP had done n will do . The Modernisation of China was not ever thought of the whole World n today almost everything in China are digitalized providing conveniences . In next 5 years I do not think my country will ever achieve china today . We can only envy n feel remorse of our own country progress . The majority of the world areeith Chinese now. 140 countries having largest trade with China. No one can afford China collapsed as it will drag the others too . Therefore, china is has one direction n that is to surge forward hence complimenting all its trading partners. Never ever dream that CCP will collapse . They are here to stay n to evolve the world to compliment humanity . Hail the CCP. They will rescue the world eventually from those bullies n hegemonic.
@@yigesbg8145 Common generally the Chinese are still doing better . Those measurement from the West were narrated in such . If u are Chinese urself u shud hv known n only fears are in u right now on what the CCP can do next . Honestly speaking , as a SEA with frens all over the regions our observeance can't be that wrong . Having business acquantances n personal friends living in China we have the 1st info of the Chinese sentiments . Only you are fearing due to ur negative perceived value against the Chinese 1. They are the biggest spenders in the world . They uv the biggest group of potential Consumers . 2. China commanded 22 percent of the Consumer Market n most probably 25 percent of the world GDP 3. Chinese travelled everywhere n hv the disposable income to even send their childrens overseas to study 4. Chinese bought all ur nations assets be it equities , corporations, bonds , n many more 5. Chinese are into modernisation while many others still struggling 6. Everywhere in China are easily accessed with rapid development in it's highways n railways network . 7. CCP kept on progressing in all aspect especially on technology sectors 8. Prudent policy emphasizing on Siciolism will benefit the laymen Chinese 9. Everything digitalized soon with AI , 5G n etc already an edge over the World 10. Many other in the pipeline n u shud hv know better . Therefore , you are in deep fear n envy of what the Chinese had achieved . You can brag all those nonsenses but yet today the CCP n Chinese are still living at their best n definitely better than most of us n urself. You can only feel frustrated with each China sensational news . I will suggest that u learn to accept the facts n reality n move on . U can only wish for ur ownself to be better of n the rest are history . There are only one way for China n that is to consolidate it's position in the World arena n build up more international support . Today out of the 200 Countries in the UN , China had easily garnered 80 percent of the support . Now it is only for China to make those of it's Allies stronger n louder . It certainly will be achieved within the next 5 years .
@@yigesbg8145 Garbages or whatsoever just learn to accept the realities . You must be very frustrated n feared how the Chinese improved each day. They will become more open than the West one day . From 40 years till now the human development was so much to shout about n they only will get better each day. They are theost fortunate among all in this world now . They can eat at ur best restaurants n can influence how ur nation economy goes. Only China can make the difference in this World now. Humanity will achieve greatest success with China efforts in innovations n Space program . Hail China hail the CCP to bring new innovations n modernisation to the world . Only those critics can envy n jealous over the Chinese progress over these years . The itgerswoll be left behind wondering their Govt effectiveness to bring their citizens to better life.
I realized that the secret to making a million is saving for a better investment. l always tell myself you don't need that new Aston Martin or vacation in Hawaii just yet and that mindset helps me make more money Investing.
Investing in the right things Matter,I have actually invested in the stock market and Crypto market trust me Crypto trading is more profitable than stock investment.
Regardless of all, lnvesting in crypto markets trading still remains one of the best ways of getting out of poverty and obtaining financial freedom in this global economic pandemic
I don't get why people see real estate as investment when you have to work 20up years but only get to have it for 70 years. Plus the house gets old and they're not gonna last for more than 50 years from what I learned from the Chinese city development - they kept tearing down the old ones and build the new ones.
Not really 70 years, you just need to reregister the house and you get another 70 years so the "70 years limit" is a not true. By the way, nobody really want to tear down old house and build new houses, they only build new houses but not tear down the old ones, that is why each city has a old part and new part. The reason why nobody want to tear down old houses is because if you tear down old houses that is owned by the owners, you need to pay the compensations to these owners, no house company is that fool to do it.
@李昊 @John Yankee you're comments simply contradict with each other... How am I supposed to know what's really the case? Do people get the compensate or not? And do they reconstruct their buildings or not? And for me personally I wouldn't wanna trade my house however much money I can get though. When you buy a house, it's not just about the house itself, but also the location, the neighborhood and everything...
@@陳查理-c2c they don't contradict at all. IF the old houses are to be teared down, they will be compensated, so very few businesses are actually able to do it (but the wealthy ones still can, for example Disneyland in Shanghai) "Keeping the neighborhood" is a luxury you don't get in any fast developing cities. If the old ones are never teared down, in 30 years you will be sections of city with water/electricity issues, and that would pave way to "poor zone" like in Western cities
@@Lyserus I don't get it at all. Sorry. In the city I live in people are in charge of their own buildings' maintenance, and there are a lot of houses which are over 30 years old or even hundreds years old, and they are just fine. Like...who lives inside the building are in charge of the renovation, and if the owners don't want to renovate, that's their business. They have their own neighborhood community to regulate those things. I know the government should care for infrastructure but it doesn't mean the houses should be torn down, unless there are safety concerns. You said people are happy with moving because they get compensation, and the other guy said no one's that stupid to pay the compensation. So do they really get the compensation? From what I see there are a lot of new buildings though. In my country if a construction firm wants to build a new building, it has to get the consent from everyone who owns the land, compensate for their renting costs, and give them a house once the new building is done. So there would be a new building and the old land owners get to choose the best apartments on the same location.
It will happen in Australia ... and sooner than you think. AUS prices will bottom out 50-65%. Over leveraged, inflation running crazy, no wage rises, no investment in new energy, nothing being produced. AUS has never had a real recession, they've got away with it... it's hilarious when they publish stories of their last recession, it wasn't anything like a recession. AUS will crash.... massively. Wait and see.... interest rates are already about to go up.
They are about to hit the brick wall of greed and they have no clue of the effect on there lives it will have. I feel sorry for them, as they say they have no hope of owning a home before the age of 40. actually now it will be like 60
A large majority of western market trades including me have pretty much come to the conclusion that evergrande will default and we’re just waiting for it to happen
The West medias trying to harp on the seriousness of it but it was well managed in China itself . In short , many shud know that the Evergrande matters were such as below 1. Many Chinese had known of Evergrande over debt position since 2 years ago 2. The PBOC had indeed forewarned n even instructed local banks to stop leading credits to developers beginning of last year . 3. The Evergrande collapsed was purportedly planned by the CCP themselves . It never pose big shock to observers 4. It was just another cracked down as intended after the Big Tech , Foods, Education , Health n etc to the CCP 5. Evergrande had unsold properties n many leased lands which commanded values 6. CCP ensured the local investors , contractors n purchasers being well taken care of. The local banks can hold some of the assets as collateral 7. PBOC is doing the right thing by squeezing all the avenues from the company n owners wealth to settle those creditors before step in to restructure the Organisation 8. As part of consolidating the housing industry , it will augur well for future buyers as less speculating activities hence price will stabilize 9. Many laymen Chinese had supported the crack down n happy over it . Though , it effects China short term growth but the move will promote transparency n professional ism in the developers . They hv to be responsible n pay off their debts . 10. In short , the effect will not spill over or over dent the economy as predicted but it will effect the internal GDP as housing contributed almost 25 percent of the GDP. The Western propagandas trying to pain a gloom picture of China economy thru their own perspectives. They certainly never analyse it on Chinese n CCP sentiments on it. Since they can't understand the underlying conditions n how the Chinese think n act the Western narratives sound distorted enough to give the true picture n understanding .
We (The West) understand exactly how it works. Owning property is a status symbol in China. It is essentially their identity. The more property (apartments) you own, the higher your social status. So it is a rat race with people trying to buy as much property as possible. Unfortunately, the quality of construction is very poor because they try to build as fast as possible. Poor quality concrete, etc. in the West, we expect our property to be fully furnished when buying. Yet in China, you are essentially buying an empty shell. It is all built on a house of cards. Eventually, prices will fall & people will want to sell as fast as possible to lock in a good price. This will cause prices to further plummet. No one needs more than one residential property. In the West, only about 2% of the population owns more than one home. In China, people are obsessed with buying as much property as possible. It truly is very sad, because the culture has been wiped out. Now, the culture is only Greed. Greed by trying to own as much property as possible. Meanwhile, 100 million empty properties in China. The communities are isolated because so many empty properties. Very sad…
@@alansmith6702 In USA your house are still make by woods . Whenever tornadoes hit it will be disastrous. In China , though earthquake it still stand tall . To compare with those Wooden Houses in USA territorials the China houses still better
@@LaowaiDaveJCP In China, the fastest way to destroy your "credit score" is to borrow very small loans multiple times. lol.Ah, but the credit system of state-owned banks is usually not portrayed on the Western Internet. They usually use screenshots of Chinese shopping software as evidence, and the way to destroy that set of "credit points" is probably not to return rented bicycles, power banks, or pay for meals. This thing is called "Sesame Credit". Destroying this "credit score" may prevent you from using China's largest online shopping platform. lol
Unpopular opinion:
Nobody can buy a house in major city of any country with just average income.
You can in London, as the banks only ask for like 5% upfront payment but you’ll be paying for the rest of your life lol and it would be a very tiny place like 30-45sqm
BINGO! Though, let's be fair what does the average person near Mongolia make per year, and what is the average cost of a house there? I don't mean four walls and a roof either, but instead a real house?
ikr,but the housing price in Shanghai is still way too abnormal even compared with NYC Toronto where people get much more paied than Shanghai.
@@RodolphosTechchannel wouldn’t that be a flat? no house would be of that size
Not true, my family member bought a small house with a small backyard in Los Angeles at 8 times his annual salary. In Shanghai that same house would be 40 times his salary.
as a youngster in indonesia that live in jakarta, its also hard to buy a house, property problem is everywhere around the globe
how much is a single family home there?
@@rocketman3770 lets say, in north jakarta where i live, a normal one floor house with around 6x15m size is about 2 billion rupiahs, so not to confusing anyone, juta is million in english, so miliar is billion in english
90 m2
2M
Itu tengah kota pasti lah mahal ...
Kalau mau lebih ke pinggir pasti lebih murah
@@greatndit iya betul bro, di daerah saya tinggal segituan, rumah orang tua, kalo beli sendiri ga mampu, sama ky d video ini kan shanghai ya, kota besar juga metropolitan bgt, pasti hargany menggila jg
@@Neuvari its normal for house price in a country's capital to be expensive
It's good that people in China do know what's happening and have basic knowledge about their economy, at least the interviewed ones. In some countries, the amount of ignorant people in the streets is surprisingly high.
They don't know what's happening. They just saw the propaganda
The real one only saw the propaganda is you
Those that do not know probably decline to be interviewed. It is likely AsianBoss likely did not include interviews with stupid answers, unlike comedy shows or vidios that only included stupid answers..
Chinese people are usually well informed and smart enough to give coherent responses. Certainly if you interviewed people in the street from my own country most people would not have a clue what was going on.
@@peterwilliams1119 everyone has basis information if a crisis occurs in their country. There is nothing smart or indifferent about it.
I am Chinese. I hope Evergrande collapse
Let's hope the government stops bailing them out
I earn only 8900RMB (1400 USD) a month in Chengdu
But it takes 20 years to buy a house
tai jia le , gong zi hai shi ge wei shu de . niu bi .
Your salary is very good for Chinese standards
Well, taking 20 years is quite normal.
14.000 USD is big
@@RodolphosTechchannel
In Chengdu is average, but in Shanghai Beijing or Shenzhen. U can barely make a living.
I really love how street interview in China shows how educated are the people on that land.. 💪🏻 not judging whether their opinion is right or wrong but just hearing their explanation gives understanding to their insightful thoughts
Paid interview !
The ladies and older gentlemen seem to be much more knowledgeable than the younger guys. Also the younger guys slur and mumble their words like crazy.
Yep.... I agree. The same street interview in the US would find only 10% of that intelligence.
please change drug pusher
please change drug pusher
These people are so intelligent. Interviewer asks great questions as well.
They are. Compare that to the average American, especially someone who doesn’t own a house.
@Julio Lopez Lol funny. I’m American. Don’t tell me you have never seen Jimmy Kimmel’s street interviews and see how smart the average person is. Or Conan O’Brien’s interview clips. Ever seen Are You As Smart As A Fifth Grader? Why do we have shows like this? Inherently, we see and know the truth. The average American is not educated enough.
@@taoist32 Those are literally comedy shows, they purposely pick those people on purpose for laughs
@@ChocolateRabbitEars Yes, and it also shows our decreasing amounts of class and morals. Dumbing down America. Johnny Carson was classy.
These are cherry picked interviews, the average Chinese person barely has a grasp of the situation, hence why the country is in this situation in the first place.
I didn't have any information from the citizens in China about Evergrande situation. Thank you Asian Boss!!! It's good to know that there is a place where we can find information about the people, more than the institutions...
people in China don't worry about it . why the west media so currious about it .they think this will make china collapse, LOL, so funny, evergrande put the land to bank for guarente ,then the bank give the money to them. if money not back , bank will take the land . the land in shanghai is huge expensive.
@@MrPeterzhu Bank will get the land which will eventually return to the government. But will the banks close the loans of the buyers who cannot move into incomplete apartment buildings? What about them?
"people in China don't worry about it"
Yes, denial works wonders doesn't it? Evergrande is the only property developer facing default? Modern Land? China Properties Group? Sinic Holdings? Fantasia Holdings?
@@MrPeterzhu The western media is doing it to further their agenda of slandering China and discouraging investments in China. Basically you can't really find any good news about China in the west. It is information warfare to manufacture consensus about China. If you talk to the average western citizen they would think China is collapsing and many of their own problems are China's fault. This is what the media is working towards so that the average western citizen will support any punitive measures against China be it war, embargo or sanction even if doing so will hurt themselves.
@@MithunOnTheNet Yeah, the bank will auction off the land so that other developer or state enterprise will continue the project. The gov will guarantee the buyer but not financial investors. Many of the over leveraged property developer are going under. Let them be. This is part of the central government's plan to control property prices and debt. Sends a warning signal to others that there are no such thing as too big to fail. You screw up, you pay.
@@Jaytip91 could be in English or Spanish, you always find information about the institutions or big companies but not much about what people (in general) think about them.
It’s the same everywhere. The rich get richer and the poor get poorer. There is wild mad greed all over the world.
The poorer get richer in China.
That's how it's always been and always will be. Funny enough, communism is supposed to be the solution to that but it always creates the worst wage gaps.
They say, "we must suffer a whole bunch for paradise to become reality." while laughing and beating the poor down and telling them to worship suffering itself.
@@Love_N_Let_Live Well, it's simply not true. From the 50s to 70s, China almost had a minimum wage gap. The salary of my grandpa was just 30% less than the top leader of his company. Workers have free medical care, free house but they are relatively poor. They didn't have money and all those fancy stuff like westerners did.
Today, life in China is basically the same as many Western countries, esp have huge similarities with the U.S., There are enormous choices and chances to make you rich overnight, meanwhile, a lot of poor ppl are suffering. But, I don't think it has many things to do with "communism". It has been called 'Socialism with Chinese Characters' for decades.
In Australia we say the rich getting richer the poor get the picture.!!!
@@Mister.Psychology not when inevitably this whole thing collapses!
They don't seem to be worried by this evergrande thing as much as the media is making it.
Because its not a big deal! Everyday someone will lose money in their investment ! You do have people jumping out of buildings but thats not the majority of what will happen. Chinese loves to gamble and in China the only thing you want to invest in is something solid like real estate.
@@toomyng9015 It is a huge deal. Chinese are largely unable to invest in anything else. Their access to stock markets is severely limited. The government has herded them into property and developers have built whole empty cities of worthless, poorly constructed buildings. This is a financial disaster for hundreds of millions of Chinese people.
I read that the govt actually already paid attention to this company much earlier so it’s not a huge surprise
@@CaptainKremmen even without government, chinese are gonna invest in properties anyway, its pretty much part of culture that having property equates to some sort of success or stability in life, Chinese diaspora worldwide have similar views
Media always exaggerated stuff
“简单来summarize一下” 笑死我了
哈哈 他应该回答in我个人的opinion，我觉得xxx
im sure i am probably just missing something... but it's honestly not that difficult of a subject to summarize and the people who were asked to do so all did a great job, more or less anyway...
@@William-Morey-Baker It was just a joke about her use of Chinglish (Chinese/English). While there are many English loan words in Chinese, “summarize” isn’t one of them.
@@William-Morey-Baker haha,they were just laughing at the girl becasue she used english word when she was interviewing in chinese.i think it could happen in many countries.
Just gotta point out how people seem to exclude Hong Kong when talking about China. The housing prices over there are waaaaay higher than either Shanghai or Beijing (compared to average salaries).
Houses in Seoul is growing at a ridiculous price also. As a South Korean living in Seoul, even I can feel the effect of the increasing housing prices up to 12% these past 9 month. Even Apartments is surging. Moon-Jae-In administration’s measures to prevent the snowballing household debt failed to stabilized the real estate market. Of course this is also the fault of South Koreans opting for “gift apartments,” reducing stiffer taxes like real estates if they were to sell the property. AsianBoss, please do an interview on the current household increases in South Korea.
Can u explain what this gift apartment means
They like to demonize China so the interview on SK housing price have to wait in the line.
1주택자도 악마화 시키고, 대출도 막아 버리고…레알 서민은 서민 답게만 살라, 주제를 알아라. 이런 정부여서 진짜 사람들이 너무 힘듦. 한남 더 힐 사는 사람들 잡으려다가 서민들을 많이 죽여 놨으니…ㅠ
South korean economy will collapse soon
I think the housing prices in China are insane. I just bought my first house in a third-tiered city in China with the help of my parents. It costs 2.42 million RMB (around 377,829 US dollars) while the average salary in this city is around 1000 US dollars per month. And it nominally is a 141-square-meter house but the actual area you can use is less than 120 square meters.
Remember when real estate was an investment?
That is a pretty large apartment but still quite pricey for the incomes in the area.
Sounds like Florida prices
So don’t live in a communist country?
@@bigmike1850 If I did live in a communist country, then I wouldn't need to complain about the housing prices.
‘Go up in flames ‘ lol, at least that would provide some light and warmth, reality is even bleaker
Right
Hilarious but a sad subject
No such thing
SCREW U BAT EATIN KUNG FLUS ...YO OWN PEOPLE SCREWED U
@@monamilkis4103 Racist. It's the Chinese government, not Asian or Chinese people. Most Chinese citizens have even _less_ say in what their government does. They are powerless to protest. You get to vote. You get to write nonsense UA-cam comments and no government minder comes knocking on your door to re-educate you. Get real
I love how Asian Boss tells the story through the PEOPLE
That is news manipulation.
@@channel20122012 I trust people more than I trust big companies / government
@@kky-jd3xj people that are interviewed do not necessary have the correct information. The news would also be based on the ppl they choose to interview.
@@kky-jd3xj i dont trust both. Institutions are famouse for news manipulation but people are also very biased beings.
@@ChanChan-gu8jj true anything can be falsified anything can be working with ill agendas, its hard to trust nowadays
Most of the Chinese here interview answer surprising well and not ignorant. In any big city the properties price are well beyond the annual wages can support for most common people staying. Look at New York, Tokyo same issue. Hence it up to government to have policies for public housing scheme for affordable house and not driven by speculator housing price.
The property valuations in China are very different than New York for example. In New York the real estate is about 10x income compared to about 40x income in China. So real estate prices would need to fall 75% to match the ratio in New York. I’m not saying they will or won’t but pointing out the comparison to New York is a poor one.
I think Asian Boss interviewed many more residents, but only air the selected few that sound more credible and make sense.
Agreed. But on the other hand, housing price in Tokyo and NY are more affordable than in SH, BJ, and SZ.
In 2019, Evergrande was separately warned by relevant authorities due to its business and debt risks. In 2020, Evergrande touched the “three red lines” of real estate companies' debt problems and wealth health drawn by the authority.
Therefore, it was forbidden to bid for new land and apply for new loans, and the high turnover& high debt model instantly collapsed.
The government has now required state-owned& local-owned enterprises to take over the ongoing projects, and ordered Xu to use personal property to repay debts. No one is too big to fail.
But what if the entire Chinese reap estate market collapses? What about all these people who were tricked by these massive real estate scams? They will all be hurt, and the government watched the bubble grow over years
@@ArchesBro The government didn't just watch the bubble grow. They actively pumped it up higher. 40% of local government budgets in China is from government real estate shell companies.
@@DBZHGWgamer True
where did you see that gov is asking Xu to pay by his own property？
You say that state and local enterprises have been ordered to take over the projects. It would seem you are confirming the communist nature of business. In a free market, Evergranxe would have to negotiate with these businesses (and without government assistance) to take over on mutually beneficial terms. If unable to do so it would have to cancel them and either refund the buyers or deal with legal consequences of Breach of contract.
President Xi said:
House (properties) is for living, not for speculation.
Those who got burnt deserved it for speculation.
Same as the stock market.
Chinese government will not Bail-Out
Evergrande to serve as a warning to others.
As a part of the great purge of anyone who made China a leading economy. It's a disconnect in securing true communist values.
@@DennisCambly communist value not mean to save the capitalist
@@DennisCambly Chinese workers made China a leading economy
@@SunnySzetoSz2000 it's not a communist value to save capitalism
@@yigesbg8145 oh. What about India?? It even struggles to feed it's own people and on plus side it a democracy a superior way of governance according to you
The comparison with Lehman Brothers is bogus. Lehman's debt was twice as large. Lehman was an investment bank, with connection to almost every other investment bank in the world. Evergrande's debt is mostly in China. Since China is not an open economy, its banks are not tightly connected with those of other nations. The amount of its debt in foreign currency is not that large a percentage and in terms of those overseas markets is not significant.
One thing it does have in common is the rating agencies. They failed to downgrade the debt in time for people to take corrective action. This also happened with Lehman Brothers.
Yeah the comparison isn't equal.
The company borrowed from HSBC Bank and other foreign banks .Why do you think some foreign banks are following the situation?
@@pacifiquetumu9650 I didn't say there was no borrowing abroad, just that is is not a significant percentage. Also, these are "straightforward" corporate bonds. In the Lehman case they were complex derivatives (CDOs) that were sold to everyone.
@@pacifiquetumu9650 I read around 90 percent of the debt is in RMB. I don't think Beijing doesn't have enough RMB to mitigate the crisis.
In fact, Evergrande's cash flow is broken due to crazy land purchase, numerous real estate and poor management. However, Evergrande can obtain funds by selling its gold value land. Therefore, Evergrande's problem is actually not so serious.
housing cost is a problem almost everywhere. My hope for the future is getting smaller.
There will be a collapse, definitely. It's inevitable. Many house owners and multi-house investors will lose it all.
I guarantee that... that's when you'll be glad you owned nothing, a time for you to laugh at those greedy people.
Wait and see.. it's coming.
The worry is the domino effect, Evergrande isn't the only company in China to have defaulted...there are at least two more...that's the reason for worry.
And then it spreads to North America, Europe and Japan!!! 😱😱😱😱😱
@@John77Doe That's his point.
@@novelas3536 He is limiting the domino effect to China. I am saying it will be like Lehman Brothers. They just seized another Chinese real estate company's property in San Francisco.
Oceanwide, one of China’s biggest real estate companies, lost control of its flagship San Francisco project.
Debtholders seized Oceanwide Center, which has been plagued by failed sales, $1.6 billion of ballooning costs and more than $40 million of mechanic’s liens, after two of the firm’s subsidiaries missed payments on $321.5 million of notes.
Two debtholders seized the project, along with shares in Oceanwide’s parent, China Oceanwide Holdings International, which were used as collateral for the notes, according to a filing Wednesday with the Shenzhen Stock Exchange. Oceanwide, which has only one San Francisco project, didn’t name it in the filing. Reuters reported the seizure earlier.
😱😱😱😱😱😱😱😱
It is just about whether the PBOC wants to help to bail them out or not . But looking at it , they rather prefer the companies to settle their debts themselves until the last resort .
As a non citizen of China I think what the PBOC did was right by trying to get the owner to pay creditors from all its assets even personal wealth . Only after exhausting all avenues the PBOC will step in. This is unlike the USA n other nations where the Tax Payer money being used to bail out ailing companies . Bravo China . The CCP has firmed grip in handling the Evergrande woes .
@@wisdomtan490 except even if using their own asset to handle the debt wouldn't even put a dent to it
The last scene , the innocent cute baby just filled my heart with joy.
Sorry , I was wanted to comment another korean video who visited in India but somehow this comment was written here. But still people are liked it. Thanks.
Its really nice to see how well aware, smart and well spoken the public is about such topics. I think ppl often forget the fact that China is not a developed but developing country and has a long way to go. In my analysis, Chinese public don't invest much in stocks but in real estate instead. Govt will partially help Evergrande just bcoz of its scale but not very much interested bcoz govt wants people to now move their investments towards stocks as well. I think some local Chinese economist can tell better though.
China's not developed? Do you even know China? Lmao. Straight talking out your ass.
One thing that makes this video misleading for foreigners is the concept of "house" in your subtitles. These people aren't talking about the prices of HOUSES, they are talking about the prices of small to modest-sized APARTMENTS. Also, these apartment prices are still way too high outside of places like Shanghai, such as in Taicang, Suzhou, for example. I have friends there and the prices they see are even insane. It's impossible to place a down payment and get a bank loan without extra family support. One friend had to use all his savings, borrow from parents, extended family, friends, and the company he worked for -- just for the down payment! Only then was he able to get the bank loan. And this was in Taicang, not Shanghai.
Why don't you talk about the density? How many people/land size in China comparing to overseas
Real estate is a major problem in most major Asian cities now. Not just China, but also Hong Kong, Singapore, Seoul. Only places with affordable real estate are Taipei and Tokyo now (because low immigration and rapidly shrinking population). The handsome Chinese guy who managed to buy his own place with parents' assistance is really lucky. Nowadays, most people can't do it without the help of rich parents.
Agreed. I know the same here in the US... I have a buddy who's that lucky..
Depends on where you want to live. Most big cities around the world is expensive.
Thanks for the great coverage Asian Boss. Love you guys!
Interviews in China tend to always be the most educated，nuanced，and well-thought out from our interviewees
The reason it draws so much international attention is Evergrande debt bonds have since been traded and trusted, but once its clear they cannot pay the debt these bonds would become worthless, crashing the economy worldwide. Maybe this will be a good thing because the real-estate market is insanely overvalued thanks to building regulations and speculation. Housing in the modern age is meant to enslave people to the banks but maybe this paradigm would have to change now.
its not big enough to crush the economies worldwide...the scale is incomparable to lehmans. Also, if the analysts were doing their jobs properly they would not have invested in Evergrande bonds in the first place. Their precarious financial position has been a well known problem in China for a long time.
Surprisingly, the interviewed people seem to be really knowledgeable n polite at the same time.
Why is it a surprise?
Asian Boss. You are great and i enjoy the topics you cover you really do a great job with the information and questions that are asked the subjects you talk about and the way you present them are professional.. Great Job thanks
I guess people on the street in Shanghai aren’t that up on real estate company news… Smaller, but still large companies Fantasia and Sinic holdings have already defaulted on some large loans, so even if Evergrande doesn’t default soon, it doesn’t mean things are good.
The news inside China is heavily censored by the CCP, that's why a lot of their citizens don't really have an exact clue of what's going on in their own country. Google, UA-cam, Facebook, etc. are banned in China. The only way for the people inside China to access these websites is if they have a VPN.
the west media is busy with make people believe China is about to collapse,but the reality is what you saw in this video, no one worry about it .this company put the land to bank for garantee, if money can't back ,put the land back . this is quite different from the Lehman Brothers.
@@jdvierra China banned Lots Of American Applications Because They Have Their Own Apps Inside Of China
@@heinrichhimmler3781 More like STEAL American technologies. Renren is a copy of Facebook, Weibo is a copy of Twitter, Alibaba is a copy of Amazon, the list goes on and on. They tried copying Tesla, but it failed miserably.
Wow, that got off topic fast… BTW, it seems another real estate developer, Modern Land China, recently defaulted on a $250 million loan, so the situation could be worsening rapidly.
While I did find responses by people to be interesting, you can see that much of the Chinese economy runs on ignorance.
that was a really interesting video from the Chinese person on the street
thanks for doing it.
Buying a house from one's salary is unrealistic. Sad truth. It's like you don't have the right to build a family if you can't even afford a house. The real estate industry has its peak even before pandemic even the agents can make a lot of money just by selling those high-end units. It's indeed a good investment especially for the inheritance of family generations and such. I love the lady in cap perspectives.
it was. in like 20 years ago.
a Pack of cigarete is like 5 times cheaper then, and a bowl of meatball soup is 3 times cheaper.
but the House Price is 300 times more expensive
If I were from Mainland China, wouldn’t the Evergrande collapse be great? Like imagine the amount of houses that would be sold at fire sale prices. I would be able to buy a house and after Evergrande fully collapses, a year or two passes the housing markets stabilise and I could sell them. Isn’t that what rich people love doing during market crashes🤔🤔🤔
If you are rich and not invested in real estate, this is certainly possible. Or, if you are young and working in a stable sector that will be insulated from the broader effects and don't care about your parents/grandparents/older generation of relatives. But, this might be wrong as China has something different than other countries: I'm not sure any investor would actually WANT a lot of the properties, even if the price crashes. Widespread use of cheap or fake materials, rampant corner cutting on vital building integrity aspects of home building, and lazy labor and construction really poses a risk to these structures withstanding time at all.
However, in China and Asia as a whole, real estate is and has been thought of as the 'one true investment'. If the price of homes crashes, so does the net worth of most Chinese people. More than that, it will ripple into the wider economy, and deleveraging is often not a pleasant experience. Commodities will crash as homes are no longer being built as they are no longer as profitable. Growth will stagnate, jobs will be lost, pay will reduce... there's a whole host of other effects.
Ya if you think like an American and gives zero regards as to who and what it might impact. For someone like yourself who has no property sure, but how about your parents, aunts, uncles and etc. Followed by worst case scenario massive unemployment then you have no job no place to live.
The evergrande problems are not so much in their completed units as in their units still under construction. People were buying units with the assumptions they will be built.
@@vilester That's not an "American" mindset. Greed is greed globally. Don't be so foolish as to imagine it's only endemic to a single nationality.
You're optimistic about the quality of the real estate you'd be buying. From what I've seen, Built By China structures show signs of aging and degradation alarmingly fast.
Interesting to listen to the well informed people.....
Yea and you say that because you know exactly what is going on in china. 👏👏 I"m sure what the western media says about china is the most accurate in ur opinion.
@@justinanderson5231 I see plenty Chinese media
Ok, since u think the people are not well informed enough, u must have watched some media that gives a better explanation of what's going on this matter . Pls tell me which media has a good explanation on this topic so I can increase my knowledge🙏
@@justinanderson5231 you look for your own information there is plenty about
@@justinanderson5231 funny how I made a positive comment and now get questions on why
If you want property prices to come down -- then introduce property taxes.
It's already introduced
@@lilyc2712 yeah and property taxes are pretty high also
excellent information, thanks for reporting this azn boss
Its crazy how can an average house cost more in shanghai than in london or new york! Even in london & new York house prices are too high. Its all funny money...
China has a population of 1.4 billion. Everyone wants to own a house in Shanghai. The Chinese have many rich people, so this is the reason for the high house prices in Shanghai. In fact, in some small cities, you can buy a 100 square meter house for 50000 yuan. Note that only 50000 yuan is needed.
ThankU Asian boss.
Not only in China, but in many countries the financial situation is not good recently.
But if China 🇨🇳 financial fall, it will effect the global economy .
@@fadzilhashim.0910 Not in the way you might think. If the Chinese real estate market collapses, Chinese people will lose their investments and need to start over again. Thier labor will be cheap and the global market likes a cheap labor force so more countries will just build up their manufacturing in the country again potentially. That is part of the reason why the entire world setup their manufacturing in China. Low wages, few environmental regulation, and a big market to sell products to. Their monetary policy of a fixed exchange rate with the US dollar also means products from China are very cheap. Ironically, the Chinese economic problems is good for the rest of the world, but not good for China to have grown such a large real estate bubble in the first place
@@ArchesBro Indians also think like you that China has low wages and less environmental supervision. China’s wages are 7-8 times that of Indians, and wages in China’s coastal provinces are catching up with southern Europe. You are brainwashed by Western media propaganda. China is very modern now, and also very clean
The conflict between China and the United States focuses on the dominance of technology, currency and finance. Your concept is too outdated
That blue and red hat girl was smart.....I liked her
Yes, there will be lots of people in China that's affected by the Evergrande crisis. However, they are still a very, very, very small % of the 1.4b population. And majority of the population have faith their government to deal with it.
Just like famous Chinese professor Li Yi says, 4000 deaths compared to 1.4b population is like no death at all. /s
@@indianatarzan8001 yup lol... That's China.
I live in Shanghai with a monthly salary of 30000 RMB, but it takes 30 years to buy a house. Why should the government subsidize these terrible real estate developers?
Wow. That is tough. I love Africa then. U can own land and build anytime. Only bad politics limits the youth
then, forget house,
buy an apartment
@@mobeyond he/she means apartment actually
They are terrible because their product is horrible quality. They build as fast as possible with little attention to quality…
Public being public that doesn't find out the status & situation are the losers (ie Blindly follow the media & rumors). Those that find out & analyst the situation will truly not be affected by the scenario being run by the housing's tailored according to HK & Western system.
In this clip, there are hardly folks (or friends) who had invested in Evergrande. The majority were not affected and don't own properties. The exception are kids who have rich parents.
Thank you for coverage
real journalism
STOP comparing Evergrande to Lehman brothers.
Evergrande is a real estate company.
Lehman Brothers was a finance company.
Evergrande is mostly operates domestically.
Lehman Brothers was global in its operations.
Lehman's failure affected many countries, because is operated in many countries.
Evergrande's collapse is domestic, and Chinese homeowners will be mostly affected.
HOWEVER, Evergrande is only the start.
Many other real estate developers in China will collapse,
because they operated the same way.
lol，you know the real situation in the USA, but not the same as in China.
If I didn't remember it wrong, Trump is also one of the shareholders(investors) of Evergrand. Is there any other American politicians and capitalists are involved, I don't know.
@@cosmos69 Trump is an idiot.
All of his business ventures fail.
IF you know he is invested in a company ---
RUN, run as far as you can,
away from that company.
DO NOT invest in it.
It WILL fail.
Subtitles in chinese could help a lot of language learners :))
I think you should look for language learning material else where.
Did you have sent them email about that matter?
I am a practitioner in the Chinese construction industry, and I would like to share my views. First of all, China's real estate is constantly hoarding land through (buying land - mortgage to the bank - buying land again). Real estate only needs to be landed, no money is required. The general contractor (construction unit) is responsible for all the expenses in the early stage. When the house is constructed and the real estate company can sell the house, the money will be given to the construction unit in proportion. The price increase cycle of real estate is six years, and prices should increase in 2021. Due to the impact of COVID-19 and the decline in birth rates, the government has suppressed housing prices, and the house cannot be sold. Evergrande Group's capital chain is broken. Evergrande Group has the largest land bank in China. If the price increases normally, it will be a myth.
You forget to mention that they overbuild poor quality buildings. Why does anyone need to own 3 apartments? Yet it is a rat race. Owning property is a status symbol in China. The more you own, the higher your social status. So everyone competing to own as much property as possible.
Unfortunately, the quality of the property is not good. Many construction defects that will show themselves in the coming years. It is a house of cards. Eventually, the system will fall apart…
I think this is pretty much the case the world over. NYC for instance the median cost of an apartment or house there is about $917,000 lol.
In Manhattan it's around 1.6 million. That's more than I've made in my entire freaking lifetime. I can only imagine how much it is in Shanghai?
Inflation is ridiculous & as who could ever afford to buy a house in today's market on minimum wage? 🤔
buy somewhere else
So that u could turn there whenever u want to
All cities in the world are expensive to buy. A Melbourne house will be at least $1.5 millions .
Compared to Sydney I think Melbourne house prices are way cheaper. Last time I checked house prices, it was more realistic for me to buy a house in Melbourne than Sydney.
when you say house, it is a HOUSE
for Chinese, it is just an apartment .......
@@mobeyond 3 bedroom house
It is surprising no mention of Xi Jinping saying houses are ‘for living in, not for speculation’.
Because, sadly that will not be achieved in at least 5 years (at very very least, I'm not saying decades or even more simply because I'm hopeful)
Thank you for this interesting video
um…I’m a fan of you guys and a shanghai local born n raised. To test evergrandes impact maybe you guys should try Guangzhou as well
I love you guys, keep it up....
Evergrand - liablilites 2% of GDP leveraged 2:1
Average European Bank - liabilities 50% of GDP leverage 25:1
Manufacture crisis for manufactured consent.
You're really gonna trust Evergrande's bookkeeping right now?
Educate yourself before writing uneducated comments. Your stats are way off... China market will collapse.
@@brandmotivo It already is collapsing. Their stock market is badly bearish, thousands upon thousands are out significantly in property investment, and that's not even accounting for all the floods and blackouts.
Compared to western newshouses chinese citzens are bing chilling on this issue
was this interview in shanghai and not in guangzhou? evergrande has more projects in southern china…
Great video 👍
This also happened in India!
Some people always think that propaganda can determine a person's cognition, which comes more from the study of various majors in basic education in schools and requires rational logic.
China has a lot more regulatory control of companies than America does. That is one of the reasons there isn't as much worry. An example of this from 2008 was Canada's banking system was not hit nearly as hard during that fallout even though our biggest trading partner was devastated.
Another is simple ignorance of the scale of the problem, while I think a lot of outside media hypes it too much, the Chinese media downplays it a lot if they report at all.
I think the solution will end up being closer to what the one guy said. The government will step in, then break up the company, forcing it to sell off some of its assets and divest from other markets in favour of competitors.
This toes the line between having a company too big to fail, and a having zombie corporations. You can help them out at a grave cost to them.
excellent work
5:57 I'm surprised the man estimated average real estate cost in terms of US dollars (he actually said $1M USD in Chinese)...
Shanghai is a very international city that does most of it's business in USD
Because he knows that the audience for this program is non-Chinese
As a Brit in Shanghai, I am more informed about the USD-RMB exchange rate than UKP. So much information online is US focused, so prices tend to be presented to us in dollars. We're used to converting between the two to see if we're getting a good deal or ripped off.
It's a private business governments should not bail out private corporations
Terrible translation! The word 强势 is not Aggressive, but enterprising.
Thank you.
简单的summarize一下😂，小姐姐说习惯了吧
Im not from Shanghai but in my country I lived in big city and it wasn’t that affordable to buy a house if you in lower class but as long as you in middle and higher class, you will be fine.
I think that’s what a healthy society or market should be like. China’s real estate market is insane.
Which city or which country?
I'm with 10:52... if other companies are doing ok without over spending then it's too bad that Evergrande messed it all up. if they get a bailout then some kind of consideration should be offered to those who STILL want to do Business with them.
But it's not just Evergrande, two other companies have defaulted.
@@GoGoPooerRangers same thing applies. No Bailout. the people might not get their money back. I'm for the people.
@@GoGoPooerRangers China has 100,000 real estate companies. How come a few will affects 100,000 real estate companies and the real estate they involve?
So interesting, they are quite smart
It seems average Chinese people have more knowledge around economy than average American people
So from her interview of 5 people you think that they know more than Americans, two of them had completely different opinions on what the government would do about Evergrande. How do you know she didn't interview dozens of people before she found 5 that seem to know something?
Being a Chinese, I still find the responses hard to believe. (In the finance industry, obviously I always pay attention to economy/market news. But ppl outside the industry? Just why...)
they are not average
I dont think poor people know about much
Based off of what? The proliferation of unfounded commentary these days..
In the middleast we have same issues, also many businesses shut because of corona impact
"Too big to fail" heard that before
There are several other property giants there that are defaulting on payments to western investors.
The debt and fall of Evergrande is not a big deal, which I don't think will cause serious problems.
Evergrande is an epitome of real estate industry in Mainland China. It fluctuates with the policy of real estate and It's a living fossil of the history of the real estate, reflecting the process of China's urbanlization.
Firstly it should be underlined that real estate is never totally capitalistic, which is not regulated by the market in China and instead is absolutely dominated by the government because in fact the land is owned and sold by the government and the house price is in the charge of the government. The real estate company like Evergrande is the the horse of carriage, of which the goverment takes advantage to boost China's economy. And real estate enterprises are a white glove for the goverment to gather fortune from the people and the scapegoat of excessive house price, whose power behind the throne is actually the government.
Nowadays, China's economy transforms and tries to decrease the dependence on real estate. The real estate industry has completed its historical mission in urbanlization of China. So China will just let it go and do nothing in face of the debt crisis of Evergrande.
You got it.
Yeah. And the housing price needs to come down to boost the financial situations of the younger generation, and the birth rate indirectly. So for the over inflated real estate industry to come down is almost a necessary step in development.
07:50 this guy seems the most informed. The bubble was caused by real estate companies treating their business like ponzi schemes, selling tofu-dreg buildings made from sugar and cardboard as "real investments". And people bought it in hopes they would later sell it for higher price. Thing with such ponzi schemes where its pure speculation and theres no real value on the assets is, the bubble will always burst eventually, prices can't rise forever. Ultimately buildings should be built to be used. A building where nobody lives in or works in is a useless building worth nothing.
localized issues, nothing like US 2008 Lehman Brothers
Wrong.... not local at all.... 50% of bond buying was from the US. That money hasn't been paid back and interest payments have been missed every week for 7 weeks. China's property market will collapse, More than that, there are 98 property companies in China are with serious problems..... it will bring down the world with it. Wait and se....
@@brandmotivo Doubt it. A few hundred million or a billions loss can be absorbed by foreign bond holders. It just won't be much to hurt the rest of the world. It'll hurt some investors for a quarter or so and will simply be written off. If you are talking about trillions lost to foreign investors, then that will be something. Overall, it's not just not gonna be big enough.
wrong, Evergrande is not just a domestic borrower, it has enormous overseas debt too.
It will an international issue if it really collapse.
crazy housing price is destroying the generation
That was really interesting to see the perspective of the average person in China. They seem quite knowledgeable and informed.
That's why you will never see these kind of interviews from Western media, they don't fit the narrative that Western politicians and media are trying to push.
Needs to nationalize the entire real estate industry
In most China big cities the normal average income group will never dream of getting a decent aoartments not to mention landed properties .
An average of USD1500 salary a month is just good enough for decent living with rented room. To buy an apartment u need to earn easily USD4000 a month in those cities .
@@yigesbg8145
Not true . Those are the years . In the city most will hv at least USD600 a month minimum pay especially when it comes to manufacturing concerned . Those rural areas still command low but urbanisation had helped them to command higher salary . Most workers are given perks n benefits such as free hostel , meals allowance n Incentives . Those Cities n Township Salary Gap are in the range if 20 to 25 percent different n with rural easily 40 to 60 percent different but of course the cost of living in rural is very low compared to Cities level .
@@yigesbg8145
That was the Western narratives n their wishes . Infacts , comparing my countries n many others China n Chinese are doing better than us .
The Chinese were lucky enough to go thru this phase which no one will expect. They hv all the infrastructures that everyone dreamt off . No matter how rich or poor they are they still live contently n no faminity n homeless roaming the street. I was travelling extensively in China cities prior to the pandemic n everyone seems busy with their chores .
CCP had done great n will only do better in the coming years when it's Chinese concerned . I buevef they will be the role model of the world now where the citizens are getting the best deal from CCP initiatives . They built , they impirivrd, they upgrade n they transform . Every nation are envied n jealous of what the CCP had done n will do . The Modernisation of China was not ever thought of the whole World n today almost everything in China are digitalized providing conveniences . In next 5 years I do not think my country will ever achieve china today . We can only envy n feel remorse of our own country progress . The majority of the world areeith Chinese now. 140 countries having largest trade with China. No one can afford China collapsed as it will drag the others too . Therefore, china is has one direction n that is to surge forward hence complimenting all its trading partners.
Never ever dream that CCP will collapse . They are here to stay n to evolve the world to compliment humanity . Hail the CCP. They will rescue the world eventually from those bullies n hegemonic.
@@yigesbg8145
Common generally the Chinese are still doing better . Those measurement from the West were narrated in such . If u are Chinese urself u shud hv known n only fears are in u right now on what the CCP can do next . Honestly speaking , as a SEA with frens all over the regions our observeance can't be that wrong . Having business acquantances n personal friends living in China we have the 1st info of the Chinese sentiments . Only you are fearing due to ur negative perceived value against the Chinese
1. They are the biggest spenders in the world . They uv the biggest group of potential Consumers .
2. China commanded 22 percent of the Consumer Market n most probably 25 percent of the world GDP
3. Chinese travelled everywhere n hv the disposable income to even send their childrens overseas to study
4. Chinese bought all ur nations assets be it equities , corporations, bonds , n many more
5. Chinese are into modernisation while many others still struggling
6. Everywhere in China are easily accessed with rapid development in it's highways n railways network .
7. CCP kept on progressing in all aspect especially on technology sectors
8. Prudent policy emphasizing on Siciolism will benefit the laymen Chinese
9. Everything digitalized soon with AI , 5G n etc already an edge over the World
10. Many other in the pipeline n u shud hv know better .
Therefore , you are in deep fear n envy of what the Chinese had achieved . You can brag all those nonsenses but yet today the CCP n Chinese are still living at their best n definitely better than most of us n urself. You can only feel frustrated with each China sensational news . I will suggest that u learn to accept the facts n reality n move on . U can only wish for ur ownself to be better of n the rest are history . There are only one way for China n that is to consolidate it's position in the World arena n build up more international support .
Today out of the 200 Countries in the UN , China had easily garnered 80 percent of the support . Now it is only for China to make those of it's Allies stronger n louder . It certainly will be achieved within the next 5 years .
@@yigesbg8145
Garbages or whatsoever just learn to accept the realities . You must be very frustrated n feared how the Chinese improved each day. They will become more open than the West one day . From 40 years till now the human development was so much to shout about n they only will get better each day. They are theost fortunate among all in this world now . They can eat at ur best restaurants n can influence how ur nation economy goes. Only China can make the difference in this World now. Humanity will achieve greatest success with China efforts in innovations n Space program . Hail China hail the CCP to bring new innovations n modernisation to the world . Only those critics can envy n jealous over the Chinese progress over these years . The itgerswoll be left behind wondering their Govt effectiveness to bring their citizens to better life.
@@yigesbg8145 just dont repeat these propaganda rubbish
Evergrande is never a surprise. It has been there for years. If you think it is a surprise, you are not pay attention
“外交上很强势” 与其翻译成aggressive不如翻译成strong更准确些，强势 是一种心态，侵略性 是一种策略。现在中国在外交上更注重心态，因为面对的事务过于庞杂，是不可能专门制定策略的。只能在基本原则的框架下统一精神，处理问题。
不然外交部都不知道怎么说话了
这频道就是个黑中国的频道…你指望它能用什么好词…呵呵呵
它就是故意这样翻译
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Investing in Cryptocurrency is one of the best chance of making money
I don't get why people see real estate as investment when you have to work 20up years but only get to have it for 70 years.
Plus the house gets old and they're not gonna last for more than 50 years from what I learned from the Chinese city development - they kept tearing down the old ones and build the new ones.
It's not the house, it's the land..and you get compensated if your house is "teared down" (a LOT)
Not really 70 years, you just need to reregister the house and you get another 70 years so the "70 years limit" is a not true. By the way, nobody really want to tear down old house and build new houses, they only build new houses but not tear down the old ones, that is why each city has a old part and new part. The reason why nobody want to tear down old houses is because if you tear down old houses that is owned by the owners, you need to pay the compensations to these owners, no house company is that fool to do it.
@李昊 @John Yankee you're comments simply contradict with each other... How am I supposed to know what's really the case?
Do people get the compensate or not? And do they reconstruct their buildings or not?
And for me personally I wouldn't wanna trade my house however much money I can get though. When you buy a house, it's not just about the house itself, but also the location, the neighborhood and everything...
@@陳查理-c2c they don't contradict at all. IF the old houses are to be teared down, they will be compensated, so very few businesses are actually able to do it (but the wealthy ones still can, for example Disneyland in Shanghai)
"Keeping the neighborhood" is a luxury you don't get in any fast developing cities. If the old ones are never teared down, in 30 years you will be sections of city with water/electricity issues, and that would pave way to "poor zone" like in Western cities
@@Lyserus I don't get it at all. Sorry. In the city I live in people are in charge of their own buildings' maintenance, and there are a lot of houses which are over 30 years old or even hundreds years old, and they are just fine. Like...who lives inside the building are in charge of the renovation, and if the owners don't want to renovate, that's their business. They have their own neighborhood community to regulate those things. I know the government should care for infrastructure but it doesn't mean the houses should be torn down, unless there are safety concerns.
You said people are happy with moving because they get compensation, and the other guy said no one's that stupid to pay the compensation. So do they really get the compensation? From what I see there are a lot of new buildings though.
In my country if a construction firm wants to build a new building, it has to get the consent from everyone who owns the land, compensate for their renting costs, and give them a house once the new building is done. So there would be a new building and the old land owners get to choose the best apartments on the same location.
The real estate tax has been introduced, hoping to severely punish the tenants, so that the housing price slowly and steadily down to the normal level
But it hasn’t been implemented yet across the country. Just a trial in some limited areas.
This can easily happen to Australians . IMHO
It will happen in Australia ... and sooner than you think. AUS prices will bottom out 50-65%.
Over leveraged, inflation running crazy, no wage rises, no investment in new energy, nothing being produced.
AUS has never had a real recession, they've got away with it... it's hilarious when they publish stories of their last recession, it wasn't anything like a recession. AUS will crash.... massively. Wait and see.... interest rates are already about to go up.
This comparison is petty beyond levels, ofcourse business collapse can happen anywhere, we werent born yesterday
Note: Evergrande is in rush to generate money so you can buy their pre-built house(not apartment) at a discounted rate.
They are about to hit the brick wall of greed and they have no clue of the effect on there lives it will have. I feel sorry for them, as they say they have no hope of owning a home before the age of 40. actually now it will be like 60
PLS PROTECT ASIAN BOSS 🙏
A large majority of western market trades including me have pretty much come to the conclusion that evergrande will default and we’re just waiting for it to happen
The economy is awful, I don't even want to imagine what a Great Recession-like event would do to the world economy in its current state.
I can see these interviewees have a broad knowledge.
The problem is that all people want to buy house/apartments in these big cities. Actually, they all have their houses in their hometown.
The West medias trying to harp on the seriousness of it but it was well managed in China itself . In short , many shud know that the Evergrande matters were such as below
1. Many Chinese had known of Evergrande over debt position since 2 years ago
2. The PBOC had indeed forewarned n even instructed local banks to stop leading credits to developers beginning of last year .
3. The Evergrande collapsed was purportedly planned by the CCP themselves . It never pose big shock to observers
4. It was just another cracked down as intended after the Big Tech , Foods, Education , Health n etc to the CCP
5. Evergrande had unsold properties n many leased lands which commanded values
6. CCP ensured the local investors , contractors n purchasers being well taken care of. The local banks can hold some of the assets as collateral
7. PBOC is doing the right thing by squeezing all the avenues from the company n owners wealth to settle those creditors before step in to restructure the Organisation
8. As part of consolidating the housing industry , it will augur well for future buyers as less speculating activities hence price will stabilize
9. Many laymen Chinese had supported the crack down n happy over it . Though , it effects China short term growth but the move will promote transparency n professional ism in the developers . They hv to be responsible n pay off their debts .
10. In short , the effect will not spill over or over dent the economy as predicted but it will effect the internal GDP as housing contributed almost 25 percent of the GDP.
The Western propagandas trying to pain a gloom picture of China economy thru their own perspectives. They certainly never analyse it on Chinese n CCP sentiments on it. Since they can't understand the underlying conditions n how the Chinese think n act the Western narratives sound distorted enough to give the true picture n understanding .
Little pink
Without CCP, there is no new earth. 沒有中共，就沒有新地球😂🤣🤣🤣
We (The West) understand exactly how it works. Owning property is a status symbol in China. It is essentially their identity. The more property (apartments) you own, the higher your social status. So it is a rat race with people trying to buy as much property as possible.
Unfortunately, the quality of construction is very poor because they try to build as fast as possible. Poor quality concrete, etc. in the West, we expect our property to be fully furnished when buying. Yet in China, you are essentially buying an empty shell.
It is all built on a house of cards. Eventually, prices will fall & people will want to sell as fast as possible to lock in a good price. This will cause prices to further plummet.
No one needs more than one residential property. In the West, only about 2% of the population owns more than one home. In China, people are obsessed with buying as much property as possible. It truly is very sad, because the culture has been wiped out. Now, the culture is only Greed. Greed by trying to own as much property as possible. Meanwhile, 100 million empty properties in China. The communities are isolated because so many empty properties. Very sad…
@@alansmith6702
In USA your house are still make by woods . Whenever tornadoes hit it will be disastrous. In China , though earthquake it still stand tall . To compare with those Wooden Houses in USA territorials the China houses still better
really? Will survive earthquake? Tell that to the people in Sichuan in 2008….
I'm just blown away with how smart and intelligent they are .
Asian Boss make videos about what's happening in Indian state Tripura....People are getting killed holy places are being demolished
Whenever i hear word debt all what comes into my mind....Squid game🤐
people in the comment section clearly have some serious misunderstanding about the social credit system……funny
Tell me more. Very interested
@@LaowaiDaveJCP In China, the fastest way to destroy your "credit score" is to borrow very small loans multiple times. lol.Ah, but the credit system of state-owned banks is usually not portrayed on the Western Internet. They usually use screenshots of Chinese shopping software as evidence, and the way to destroy that set of "credit points" is probably not to return rented bicycles, power banks, or pay for meals. This thing is called "Sesame Credit". Destroying this "credit score" may prevent you from using China's largest online shopping platform. lol
Certified Gold!!!!!