China’s economy is on a dangerous track and may soon experience a crisis worse than the European debt crisis, Chinese economists say.
Since the Chinese regime implemented a series of “tightening” policies to curb the real estate market, home prices have been falling across China. Meanwhile, land sales–the main source of local governments’ revenues–have also dropped sharply.
In late October, several developers in Shanghai abruptly lowered home prices in new developments by 20 to 40 percent. Soon after, price cutting spread to Beijing, Hangzhou and Ningbo in Zhejiang Province, and Nanjing in Jiangsu Province. Recent homebuyers, unhappy about the sudden devaluation of their investments, staged protests with many demanding refunds.
End of Huge Profits
“The price cuts in Shanghai are just the beginning, the worst time will be the first season of next year,” an analyst at Centaline China Property Research in Shanghai told The Epoch Times. He added that the era of huge real estate profits will no longer....
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