this post was submitted on 03 Aug 2024
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[โ€“] [email protected] 22 points 1 month ago (1 children)

The quick answer is because the housing market was used for speculation and was causing real estate prices and rents to rise. China introduced "three red lines" policy to mitigate this and let the housing market crash and let the billionaire CEO Hui Ka Yan (and mostly foreign Investors) hold the bag

[โ€“] [email protected] 8 points 1 month ago

There were other positive feedback items happening as well, including local governments relying on development as the major tax base.

China is also likely to see a drop in infrastructure investment in the next generation, so having some of these companies collapse isn't seen as a major issue in China.