Interest rates going higher, page-1818

Enjoy your 2 minute noodles but worry about whether you can afford them you property moguls as per >

https://www.msn.com/en-au/news/australia/this-fairytale-village-in-ruins-symbolises-state-of-china-s-economy/ar-BB1pCYzP?ocid=msedgntp&pc=U531&cvid=2ce841bdf8b64cb58dd694593b56f335&ei=25#:~:text=At%20its%20peak,the%20property%20sector.

At its peak in 2020, the real estate sector accounted for as much as 30 per cent of China’s GDP, while Chinese households had 80 per cent of their wealth tied up in property.

The boom and then bust has left an oversupply of tens of millions of unsold homes across the country, while hundreds of thousands of Chinese investors were left stuck paying mortgages on properties that may never be completed or occupied.

In May, the Chinese government took dramatic steps to try and rescue the sector, including a 300 billion yuan ($61.2 billion) central bank loan program for local governments to buy unsold residential stock and convert it into affordable housing.

The bank also abolished the national mortgage interest rate for first and second-home buyers and slashed the minimum down payment requirements.

Rory Green, chief China economist at GlobalData TS Lombard, says the Chinese economy was now running at multiple speeds, with advanced manufacturing industries like electric vehicles and solar panels surging with investment while the real estate sector languished.

The broader Chinese population was not feeling the impact of the high-tech boom because those industries didn’t employ as many people or have the same deep connections to the economy as the property sector.