Chinese official media Xinjing News recently reported that some people in Hebei Province had announced on the Internet that they were giving away their houses because they could not afford to continue paying their loans. Photo: Photo taken by Xinjing News
To coincide with the launch of the 14th Five-Year Plan in 2021, the Chinese Communist Party (CCP) has recently stepped up its official propaganda about “China’s positive economic situation” and has been actively promoting China’s market size, economic resilience and so-called institutional advantages at Home and abroad by comparing it to the severe Epidemic and economic stagnation in the West. However, Chinese official media recently reported that some people in Hebei province had announced on the Internet that they were giving away their homes because they could not continue to repay their loans, saying that “this is only an isolated case and there will not be a large-scale incident like this”.
According to a report by Xinjing News, a subsidiary of the Propaganda Department of the Communist Party of China (CPC) Beijing Municipal Committee, a homeowner who bought a 40-square-meter (about 12 pings) home in 2016 in Tianyang City, Yanjiao, Hebei Province, still has a loan of more than 700,000 yuan left to pay off, but can no longer afford to repay it, so he wants to “give away” the house, but the party receiving the house must bear the remaining loan and other transfer costs.
The owner explained that he bought the house to get married, but didn’t live in it much after buying it, and moved to Yunnan in 2017.
The report said “this is still an isolated case, and there is no large-scale similar situation. According to the Voice of Hope report, Xie Tian, the John M. Olin Chair Professor in Business at the University of South Carolina’s Aiken School of Business, believes that this is only the tip of the iceberg, and that there could be at least more incidents in the same region, and that it could be a larger social problem throughout China, but it just hasn’t come to light yet.
Xie Tian stressed: “This huge panic, huge inability to repay mortgages, facing a decline in housing prices, loans are very high such a predicament, should be very very common”, in recent years in China, the financial system, financing platforms, funds and other projects bursts of lightning incident after incident, Xie Tian warned: “This is actually China’s RMB system and China’s economic collapse of some phenomena, this phenomenon with the next economic recovery slowdown, and may be coupled with the plague. This phenomenon will only become more severe with the next economic recovery slowdown, and possibly with the plague coming again.
China’s real economy is in dire straits, and loan subsidies have long been over-floated, exacerbated by the impact of the Wuhan pneumonia (CCP virus) epidemic. According to the 2019 China Index Research Institute data estimates, the scale of bonds to be repaid by China’s real estate industry in 2019 amounted to RMB 499.45 billion, and this scale will accumulate to RMB 651.34 billion by 2020, while it will accumulate to nearly trillion RMB by this year, with heavy cash flow pressure on real estate enterprises and a systemic storm already in the air.
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