Should have stuck to legal crimes
this post was submitted on 26 Jan 2024
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China’s real estate crisis, now stretching into its third year, is dragging down the country’s economy, hitting an important store of wealth, and dampening consumption.
Now, a major financial regulator is calling on the country’s banks to keep lending money to prevent the sector from collapsing entirely.
Real estate is critical to the Chinese economy, at times contributing as much as 30% of the country’s GDP.
Pan Gongsheng, the central bank’s governor, also suggested that he would cut loan prime rates, a reference point for Chinese mortgages, next month.
And in September, Chinese authorities detained Evergrande’s onetime billionaire chairman, Hui Ka Yan, for “illegal crimes.”
The developer, which has about $327 billion in liabilities, won brief reprieves in October and December, as a judge gave it more time to persuade creditors to back a restructuring plan.
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