“It would be inappropriate for the central government to directly provide fiscal support, as it could lead to expectation of future government bail-out and therefore moral hazards,” Zhang said.

Ouch, no handouts for the financial bros...😂

  • o_d [he/him]@lemmygrad.ml
    ·
    3 months ago

    In May, officials unveiled the biggest rescue package yet. It contains a 300 billion-yuan ($42 billion) central bank fund that attempts to help local governments buy finished but unsold homes and turn them into subsidized housing.

    Cool.

    That’s aimed to reduce the massive housing inventory, but fell far short of the 1 trillion to 5 trillion yuan that some analysts said was needed to deliver a more decisive fix.

    Uh huh. Go on... Oh that's it. You just made it the fuck up.

    Separately, the IMF warned of “significant downside risks” to China’s inflation outlook, saying “a negative domestic demand shock amid high debt levels could trigger a period of sustained deflation.”

    So the thing that workers in the west have been asking for wrt the housing market for over a decade now.

    It estimates that real GDP in 2029 could be 5.4% lower in a scenario of prolonged deflation — or a period of declining prices — where core inflation stays at minus 0.1% for five years. That could also lead to slower growth among China’s trading partners.

    Read: Wealthy American capitalists.

    In short, China rejects advice given regarding their housing market from an institution lead by a country with an overinflated and unaffordable housing market.

    • redtea@lemmygrad.ml
      ·
      3 months ago

      The IMF will give advice whether you ask for it or not. Then all you have to do is the exact opposite and you'll likely be voted in forever with high public support.

      Edit: I see @REEEEvolution@lemmygrad.ml got there before me lol

    • PolandIsAStateOfMind@lemmygrad.ml
      ·
      3 months ago

      As a rule, you should always decline any IMF proposition. For the safety also send back severed heads of the IMF negotiators, but i guess that would be uncivil.

      • o_d [he/him]@lemmygrad.ml
        ·
        3 months ago

        Uncivil and it gives the crakkker empire an excuse to show why American's can't afford healthcare. Not that they needed an excuse.

    • Absolute@lemmygrad.ml
      ·
      3 months ago

      what I'm reading here is that foreign capital is throwing a tantrum cause Chinese gov is gonna let them lose money on shit investments because they prefer houses being used for their intended purpose rather than asset vehicles for wealth accumulation

      sucks to fucking suck doesnt it

      • o_d [he/him]@lemmygrad.ml
        ·
        3 months ago

        It's actually quite hilarious. The CPC has made a fool out of these imperialist scum. They thought that they could infiltrate and overturn Chinese socialism. But socialist development is superior to capitalist development in every way. Even with market mechanisms in place. And a strong socialist state has prevented capital from taking power. Now all the imperialists can do is screech about China's "inevitable" collapse.