China’s state is eating the private property market
Pity those soon to buy a home
At an upmarket housing development in Wuhan, sales agents want to make clear that their state-owned firm has severed all its ties to the private sector. The firm had at first partnered with Sunac, a private developer, until it defaulted in 2022. A saleswoman explains that the firm’s owner also controls the city’s waterworks and electricity provider. If this type of firm collapses, she says with a grin, “then the whole country has no hope”.
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This article appeared in the Finance & economics section of the print edition under the headline “Xi’s healthy appetite”
Finance & economics April 13th 2024
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From the April 13th 2024 edition
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