Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

Isn't all that investment outside of China? My understanding was ghost towns weren't investment based but planning failure based


No, domestic savers have capital controls and do not have the means to move money easily outside the country. The stock market also is not reliable in China as an avenue of investment. Government pensions are also small. So that mostly leaves real estate.

Evergrande Group is emblematic of the real estate industry’s trouble there. Property is 15-30% of Chinese GDP and much of it goes towards investment property.


Thanks!




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: