In 2024, the thunder continues.
As time goes on, we face more and more challenges. Recently, the volatility of the real estate market and changes in the financial markets have made people uneasy. Against this backdrop, I would like to share some observations and reflections on 2024.
First of all, we see that large real estate companies such as Evergrande and Country Garden are in trouble. The debt problems and broken capital chains of these companies are worrying. In addition, Vanke's rating is also declining, which further adds to the nervousness of the market.
At the same time, the U.S. is still going all out to short China. They try to put pressure on the rabbits in the financial markets by raising interest rates, for example. This approach could lead to capital outflows and exchange rate fluctuations, creating even greater challenges.
In addition, we are also seeing problems with some wealth management products that use real estate and land as collateral. These products are risky because they rely on the stability of the real estate market. If the price is **, the value of these products will also decrease. As a result, we are seeing some funding companies start running away to avoid potential risks.
As the real estate market cools, revenues may be affected. This could lead to exacerbated fiscal problems, challenging public spending and project investment. To address this issue, it may be necessary to increase leverage to provide financial support to the local government.
Finally, we need to focus on the situation of ordinary families in this process. If the housing market continues, many households may face a shrinkage of assets. In addition, if house prices** cause the value of the home to be insufficient to repay the loan, households may be in debt.
Overall, 2024 is likely to be a challenging year. We need to keep a close eye on the market and take measures to deal with it. Caution is needed to ensure that we are financially sound to deal with potential risks, both as individuals and as individuals.