China's property market is in danger in 2023, why is it?Could it be our own mistakes?In 2024, with the US dollar cutting interest rates, the financial and economic struggle between China and the United States has entered its final stage, and a major crisis is looming. Is this crisis an inflation or an economic problem?Are we ready to deal with it?This article will explain the reasons why China's property market and China will both be in distress in 2023, and analyze the actions of US dollar capital against China.
1. High risk and high leverage
The primary reason for the distress of the property market is the problem of high risk and high leverage, which is a huge thunder. In order to break this situation, we need to actively adjust and avoid letting others take advantage of the opportunity to detonate. At the same time, China's economy needs to undergo a large-scale transformation to reduce its dependence on real estate and reduce the dependence of local finances on real estate. However, by the end of 2023, we have not yet fully achieved a soft landing for real estate, and risks remain. Therefore, we need to take more targeted measures to dismantle this mine.
2. Local debt risk
Another factor that has led to the distress of the property market is the local debt problem. Local debt is also a huge mine, and we need to dismantle it. According to statistics, in 2023, the problem of local debt still exists and has not been completely resolved. Therefore, while solving the property market problem, we also need to deal with local debt risks to ensure the stable development of the economy.
At the end of 2024, China** has formed a big bearishness, and this is similar to the situation in many countries around the world, because the US dollar interest rate hike has launched a financial war against the world. Dollar capital from around the world began to flow back to the United States, including the impact on China**. In addition, the United States has also taken a series of actions against China, such as blowing up the dollar bonds of real estate companies and divesting investment institutions. Affected by this, China's ordinary people and stockholders have followed suit and withdrawn from the market. Thus, the timing of the dollar capital** was formed.
The US dollar interest rate hike harvests the world and returns US dollar capital to the United States, which is a common financial warfare method used by the United States. Then, after the rapid reduction of interest rates in the dollar, they took the cheap dollars to the world to sweep the goods at low prices to solve the financial and economic crisis in the United States. Therefore, the United States is trying to exacerbate the bearishness of ours and the property market to pave the way for the harvest of the dollar. Recently, the U.S. Treasury, the Federal Reserve, Wall Street investment banks, and the mainstream** have all warmed up the rhetoric of a US dollar interest rate cut. According to Mr. Lu Qiyuan**, the scale of the US dollar interest rate cut will reach a historical level of more than 10 trillion US dollars. Such a large-scale influx of dollars, whether it is driving up prices or housing prices, will bring huge challenges to China's economy.
In the face of the formation of this negative situation, the financial work conference in November 2023 has begun, and we have fully deployed the work of risk prevention. Financial institutions have come out to talk about risks, and the governor of the central bank even said that the property market has found a new equilibrium, and real estate has bottomed out. In addition, the State Administration of Financial Supervision has placed special emphasis on the high risk of small banks and the need for comprehensive supervision. In the real estate market, we have adopted the method of holding the reins and letting go in small steps, gradually squeezing out bubbles and risks to avoid big ups and downs. Although this approach comes at a cost, it can effectively reduce the room for manipulation of dollar capital. For **, we have adopted a strategy of stability and overriding everything, and we are not currently carrying out the operation of entering the US dollar in a big way, but waiting for the US dollar capital to enter in a big way, and quickly **, not leaving too much room for manipulation by the other party. Therefore, we need to stay strong, stabilize, and ensure the stable development of the economy.
China's property market is in danger in 2023, and we need to take measures to deal with the historical downside. By removing the mines in the property market and solving the local debt problem, we can gradually stabilize the property market. In terms of **, we must be stable and overriding everything, stay on standby, and wait for the right time**. The most important thing is that as long as China's economy continues to improve, all difficulties will be kept away. Therefore, we need to maintain stable economic development and be prepared to deal with risks, and at the same time strengthen financial supervision to prevent the impact of external risks on China's economy. Only in this way will we be able to cope with the Armageddon of 2024, avoid the double risk of attack, and achieve sustainable economic development.