Market Review and Trends
China’s Stupidity to Not Use Immigration to Solve the Property and Job Crisis
By Investmoolah  •  October 11, 2023
In yet another epsiode of the unfolding China Property Crisis, Country Garden has warned that it might not be able to meet all its debt obligations. This is due to Country Garden experiencing slowing home sales which means it does not have enough cash receipts (inflow) to meet debt repayments (outflow) Sales to Generate the Cash flow for Repaying Debts As China developers have disclosed, there is a lack of sales and this is due to the destruction of speculative demand  especially in Tier 3 and 4 cities. This means only real demand based on population needs is left and the truth is these cities do not need these excess apartments based on their population numbers. Immigration is the Solution If there is insufficient demand, the solution is to increase the population to generate more demand. Following the example of Singapore, Singapore opened the immigration floodgate which led to an increase in rental demand for both its private and public housing markets....
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By Investmoolah
A total otaku who loves anime, investing and the occasional K-drama. My financial journey begun at the age of 22 and has revolved around the concepts of "Working Hard", "Saving Well" and "Investing Wisely". Through my journey, I have realized that financial literacy is something we have learnt little during our school days but is one of the most useful and relevant skill that we have to be equipped to take on the real world. Concepts such as compounding and "common sense investing" are skills that will place us ahead of the race to retirement ...
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