"Block" the ability by making stock investment more attractive. Change the flow from non productive speculative real estate into growth companies. Chinese stock market is so cheap, cheap on a historical perspective but also in comparison with foreign markets. Lead money flows into the stock market, this can give ammo to Chinese companies to innovate and expand on the right moment, when the rest of the world is struggling. Housing should be for living, not speculating. Stock market is better for speculation, you will definitely get some pets.com but you will also get some Google or Snowflake too compensating for the "lost" investments.
Chinese Economics Thread
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"Block" the ability by making stock investment more attractive. Change the flow from non productive speculative real estate into growth companies. Chinese stock market is so cheap, cheap on a historical perspective but also in comparison with foreign markets. Lead money flows into the stock market, this can give ammo to Chinese companies to innovate and expand on the right moment, when the rest of the world is struggling. Housing should be for living, not speculating. Stock market is better for speculation, you will definitely get some pets.com but you will also get some Google or Snowflake too compensating for the "lost" investments.
Zero-COVID in China is now even stricter than it was before vaccines and effective medical treatments despite new strains having much lower virulence
You can lead the horse to the water, but can't force it to drink.
Means to make the stock investment more attractive then you have to make the stock investment more atractive, and not simply kill the alternatives.
If this is this simple then there would be no economical issue in any country.
Lockdowns and quarantines are actually shorter and narrower in scope than before, but there are more lockdowns and quarantines at any one time because Omicron is just so much more contagious.
>just hatched
>from Hong Kong
Market forces mean property developers, property investors, speculators and real estate agents manipulate prices. If so called market forces work, then the world wouldn't be such a mess right now.
A clause or not won't stop these people from vandalizing property developer office. In addition, many of these property investors and speculators probably could hire people to do their dirty works.
A real estate bubble is crashing down now or 5 years from now. If the crash happened years later and housing prices allowed to double like previous years, then we would be looking at a major recession that last decade. Housing is for living not investing. Just look at how hedge funds got into US housing markets and cause the rental price to double.
Hong Kong people have been property speculators for years. It didn't stop them from investing in the US or UK. I would say that the more money these speculators made in the local market the more likely they would invest in the West.
Of course, I agree. I am not suggesting killing the real estate sector and I am not an economist, however I can give an example from my country. When you have gains through stocks like dividends you have around 30% tax on earnings while selling a house with profit is 22% on earnings. As a result there many more speculating in real estate than in the stock market. I have no insight into the Chinese tax system though, but I guess there are incentives a government can apply to make real estate less speculative while leading the investment thirst into other sectors. Things like higher tax for house nr2, nr3 helping first time buyers, higher tax for profiting from real estate sales etc. At the same time, lowering the stock transaction fees, lowering taxation especially for those that invest and not trade are just a few quick ideas. Tesla did burn a LOT of money issuing more and more shares, however the long term investors got a huge return. I guess many Chinese companies could use fresh capital on times like these.
@henrik please explain the current housing market issues or lack thereof in America, Canada in cities like Toronto, Vancouver having the most expensive real estate in Canada and rank high up in all of North America.
How about the current market conditions in South Korea where the Seoul government is trying to phase out basement dwellings as a result from their worst floods due to the heaviest rainfall recorded in a century. South Koreans are forced to live in less than ideal situation because the housing market is just too damn expensive for any hardworking South Koreans to afford. One of the interviewed person on this segment works for the Government and yet the place he can afford is no better than your average S.Korean.
You keep harping on the invisible hand a.k.a. Adam's Smith "Free market" that never was. There's only regulated market in America and elsewhere.
If Free market was to be allowed, there would be no need for any regulation or regulatory agencies since the regulation or the winner of any industries ought to be left strictly and only to whichever company sells the most or chosen by the sheeps. So if you buy milk that's rotten, spoiled as an example that responsibility lies on the idiot consumer who made the rationale choice of choosing to buy from that business. The business itself will then collapse or shut down if it fails to improve it's product quality and safety. Hence, there's no need for any government intervention. If you buy anything that will lead to your demise the onus is on you. Is this where your stance? Are you one of these Chinese who believes in this crap?