China doubles down on manufacturing, leaving real estate behind
Chinese authorities in 2020 intensified a crackdown on real estate developers’ high reliance on debt for growth. Property sales have since plunged while developers have run out of money to finish many projects, cutting into what was once about 25% of China’s GDP when including related sectors such as construction.
UBS analysts late last year estimated property now accounts for about 22% of the economy.
“Supporting the modernization of the industrial system” came first in the finance ministry’s report, followed by “supporting the implementation of the strategy of invigorating China through science and education.”
Support for consumption came third in the finance ministry’s priority list this year, with no monetary value listed.
https://www.cnbc.com/2024/03/08/chin...te-behind.html
Chinese authorities in 2020 intensified a crackdown on real estate developers’ high reliance on debt for growth. Property sales have since plunged while developers have run out of money to finish many projects, cutting into what was once about 25% of China’s GDP when including related sectors such as construction.
UBS analysts late last year estimated property now accounts for about 22% of the economy.
“Supporting the modernization of the industrial system” came first in the finance ministry’s report, followed by “supporting the implementation of the strategy of invigorating China through science and education.”
Support for consumption came third in the finance ministry’s priority list this year, with no monetary value listed.
https://www.cnbc.com/2024/03/08/chin...te-behind.html
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