Thanks for watching everyone. I'll try stay on top of the bot comments, but if you see some, please help me out in reporting them. We will defeat the bots!

Good, housing prices was propped up by the government. All housing should be affordable, China made a huge mistake by propping up its home prices. Canada, Australia and UK needs to bring down their home prices too.

im glad china actively break the bubble by themselves

Love that term “a little bit of a ponzi scheme” 😂

You are showing Chinese data as fact. The actual prices are so much worse. The light at the end of the tunnel is a freight train coming the other way, its called Demographics.

Our economy is struggling with uncertainties, housing issues, foreclosures, global fluctuations, and the pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.

How is the price of property going down a bad thing. High property prices are only good for the 1% and even then only to brag. It helps literally no one

I love your channel but not this kind of clickbait videos. If I am 'predicting' a market crash with the s&p in all time highs for three years I am obviously going to guess.

A good addition to BABA and JD's falling sales figures is the massive rise of PDD. PDD is a similar platform but heavily focuses on cheap but lesser-quality products. This shows a fundamental shift in consumer trends in China. For the past 30 years, Chinese people have increasingly desired premium products with higher quality. Now we are seeing a total reversal. For producers it's a race to the bottom.

Lowering property prices is a good thing. Housing seen as an "investment" vehicle is the bad thing which will eventually be corrected in China (for the good) seeing the fall in property prices

Look at the previous years growth when people say there is a lose its kind of irrelevant if you have seen 200-300% price increase in there assets. It's like in Australia people say that prices have slowed or reversed in some states but it's barely a change once you take in a decade of growth. The Chinese government doesn't seemed too worried they didn't really do any stimulus even during COVID so I doubt there is any news here.

Could you comment on the differences been the Chinese and Australian housing markets? Both markets are seeing construction companies collapsing and ongoing projects being stalled. Yet in China property prices (new and old) are dropping, while prices are going up in Australia.

Honestly most of these homes are second homes for almost 70% of Chinese homeowners.

in meanwhile us economicy is vbrnk of collapse😂😂

Sure would be a shame if Chinese investors had to sell their property in the US to cover their losses...

Great analysis! I love the video. Thanks.

Amazing video. please keep us updated with China's economy situation 🙏🏼

Maybe they'd sell more houses if people actually wanted to live there

As a side note; Social Security and Banks also work in very similar way to Ponzi Schemes In contrast to Ponzi Schemes; Social Security is not voluntary (at least in my country). Using banks are voluntary but not using them leaves you very little choice to survive in the modern world

China’s economy has already collapsed million times on KZfaq, how could it be collapsing once again?🤣🤣🤣

China’s developer learnt from Malaysia. 😂

Nice videos very informative i would like for you to do a video on the UAE economy get your take on it. Since there is so much hype around it see if its worth it 🙌🏻🙌🏻🙏🏻

3:10 similar to 401k? haha

In India also, this ponzi scheme is norm.

Great video!

Fantastic content. Interesting, informative and genuinely different from much of the other financial content out there on KZfaq.

Is it just me? Or the red down arrows look like a middle finger? 😂

Yes the price keep going down for years even they keep reducing the mortgage interest rates still going down

A great channel. Thanks for continuing the perspectives.

First time watching your video... Aussie???

Getting along with a dictatorship, yeah that's wise policy down the line. Ask Britain how appeasement worked out in the 1930s

Right off the bat, did he say Chinar?

Another video, another news I wasnt aware of. Keep making great videos, Brandon. And please include Turkey news as well. You will find interesting stuff, to say the least.

I love your content u really explain and breakdown for anyone to understand

For Australia and certain other commodity-rich nations it's a different story but, with respect to most of the rest of the world, macroeconomists do NOT agree that China's economic meltdown will cause much if any overall harm. First, China's economy is only around half as big as China says it is. For that reason alone China's economic woes affect the rest of the world less than people think. Second, due to the balance of payments between China and the many nations that have a trade deficit with it, most nations will lose little as China's growth falls -- because China uses up so much of the world's demand leaving less for other nations to satisfy. Again, commodity-rich nations may lose as China's economy falls. But, again, some nations will gain. As for the US, the macroeconomists that I listen to -- the ones who really know China -- say that, as China's growth falls the US either benefits slightly or that it's more or less a wash. Note, however, that these macroeconomists don't consider the costs that China imposes on the world through its cheating, plundering, and vandalism, that is, the costs attributable to China's IP theft, unfair competition, espionage, cyber warfare, economic and political coercion, land grabs, disinformation campaigns, threats of military force and the resulting increases in defense spending among threatened nations, and myriad other ways in which China abuses its power and subverts the liberal order. If macroeconomists did include all of these imposed costs in their calculations, it would be clearer to them that, as China's economy suffers giving it less power to impose its will, the world outside China benefits overall.

Unfortunately, China can't just import people through immigration to prop up demand across all sectors like here in Australia. They have to rely on their own population, which is unfortunately on the decline. Having said that, the Chinese government is one of few governments in the developed world that have the balls and ability to take drastic actions to solve a crisis.

However, for the China&CCP doomsayer, it's worth noting that the drop shipping trend and new platforms focusing on consumers outside of China are gaining momentum. This is shown by the Meta's data on ads spend. If no new tariffs are in place the export rebound might impact the Chinese economy in a much-needed "positive way".

The "Three Red Lines"...China has such a dramatic flair for naming things, it's so great.

Sadly housing prices are not collapsing in Germany lol

3:39 "A BIT LIKE" doing some heavy lifting to not directly call a Ponzi Scheme a Ponzi Scheme.

It’s a great opportunity to buy state own conglomerates and banks. For example CCB was trading at below 4 PE, 7-8% yield and a 30% payout. An other example is Ping an Insurance and CITIC, citic is pay around 7% yield it’s 70-90% under value because of its debt however half its debt barrow from the Chinese central bank and citic is own by the Chinese government meaning they are not going to call on those loan as long as the CCP still in power. Did I also mention there is 0% dividend and capital gain tax. Chinese dividend stock give a better return than Hong Kong real estate. Sold several houses after price to rent went from 17 to 20+ then bought Chinese dividend stock and road the capital gain and 3-4 years of dividend. I not just save money in tax, security fees and lost rent. I pay no tax in any of my stock activity.

It's called the burst of a bubble.

Deflation is not that bad of a thing but government intervention is.

Bravo for such a clear explanation of the situation in China, I am also in the Charlie Munger camp! Keep the great videos coming! Thank you!

Imagine trying to package the fact that prices are falling as something bad for the working class. Delulu.

Why are comments with critique of China being removed here?

They were counting or foreign investors,idiots with money.

question- the GDP was up 5 percent for first quarter 2024. From that figure it doesnt seem that bad, how does the housing and the GDP co exist.

Good thing home prices only go up XD

bro changed the title of his video twice, to feed the algorithm.

housing prices have dropped so much the people are feeling poor

tldr; china is going through 2008 in the u.s. lol

Don’t know if you’ll get to it… but you start buy saying 90% of Chinese own their own home… and that isn’t quite true. You lease homes from the government and don’t own the permanent rights. But maybe you’ll bring that up later in the video.

Loved the ending there! I'm a little tired of the naked China bashing you see everywhere you go, so to hear someone offer a balanced and pragmatic take is more than refreshing! People seem to forget China is the second largest economy in the world and one of the largest buyers of global commodities.

I think you’re missing the part where the world got along with them … untill more recently.

Owning your own home means house prices do not matter to you, unless you plan on selling...

No mention of the impact on the shadow banking system

Zzzzzz....it has been how many years now since I hear that?

确实是这样的。中国房价特别贵，而且据说是支撑起了很大一部分经济。现在房价跌了，也不知道中国政府会用什么办法来应对。

Why do I think of Star Wars Episode 3 when I see Warren out of the background, Elon in and Brandon wearing black? 🤔

This is exactly how it happens in India as well, the pre-construction projects turn into Ponzi scheme if they don't get money from previous projects' completion.

It's not really urbanization that spurred them to make so many ghost towns. There were excessive building in the rural areas as the government were paying huge compensations for homes acquired for public projects. If you have a 200 sqm 3 story building, you will be compensated 3 apartments each 200 sqm or the amount equivalent. That's why there's this commonly known term 暴发户, which mean household who suddenly got rich. I travel to China regularly and to the remote areas. The sentiments have drastically changed. Pre-covid, everyone was fighting for every inch of land they are possibly entitled to, fighting with their family for their ancestral land. Paying good money to fence up and claim their properties. The last trip I went in March, people are saying that the govt is broke and no longer buying. The number of homes a PRC own is unbelievable, especially in the rural area. They will hope to have one in the city they work in or where they plan their family, and another ancestral land for retirement or burial after death. But most are glad to forsake their ancestoral land if the government is willing to acquire from them

Is it the moment to buy China ?

If you can , Would you sell your property in Australia and buy in China or Hong Kong??? Buy low, sell high?

Canada builds in the same way

I think there's a benefit to the downturn in the housing market is a good thing, better to have a slow correction than a sudden crash.

And contrary to China, the housing bubble collapse in Canada is getting better!🤣

Kinda sad and funny at same time. China's got so many houses their knocking down buildings, in america we don't have enough homes for people who want them. Prices sky high!😂

Falling 🏠 prices are great for young people starting a family. The Chinese government might come out of this smarter than they look now.

“I believe that banking institutions are more dangerous to our liberties than standing armies,” Jefferson wrote. ” If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around(these banks) will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.” “ The issuing power of currency shall be taken from the banks and restored to the people, to whom it properly belongs.”

The 90s% ownership number is misguided. You are not allowed to "own" RE in China, it belongs to the state and you buy it on 99 year leases, unless your CCP special. Thus, 90% of Chinese citizens own rights to 99 year leases from the state.

It seems like New Money recycles content so much.

Isn’t that increase in export due to selling to Russia war effort?

China could be the first country in the history of the world to end homelessness due to the surplus of empty housing. The Chinese government doesn't have a housing bubble because it is an authoritarian and state-controlled economy, managing all monetary and economic policies. We keep looking at it as a Western economics of a free market. But China's not that.

Can I say I told you so yet?

so basically a ponzi scheme

So china is not allowed an economic downturn? Why don’t you make a video about building in san fran selling for 90% off. Not because of economic downturn, but because of crime and bad policies.

"Chiner"

Odd you don't discuss the imminent real estate implosion in the US in the same terms.

Here before the irritating bots lmao

When you described a ponzi scheme and then said that's how the Chinese property market works, did it ever click that's kind of how all highly financialised markets work?

China is not the biggest engine of global growth. China has been the largest component of global growth only in an arithmetical sense. China's overall effect on the rest of the world is actually to undermine growth somewhat -- because China sucks up much of the demand that otherwise would be satisfied by other countries. The country that supplies the most demand -- and therefore IS the biggest engine of global growth -- is the US. By a huge margin it is the US that generates the largest amount of the demand that drives growth for the world (albeit not for commodity-rich nations that supply China).

George Magnus has correctly predicted 27 of the last zero chinese economic collapses. Nice work if you can get it.

Sounds like US social security

This too shall pass. Ditto Charlie Munger. The Chinese word for disaster also means opportunity. China is leading the transition from non-renewal energy to renewable energy so it's only a matter of time for that to pay off. They're also leading the way to facilitating autonomous driving, which in turn will increase productivity for lower cost.

All I can say is that the ammount of Chinese summer tourists is noticable here in Europe so there is something brewing

Hahahahha china karma

The CCP bots are strong in these comments

Welcome to western propaganda account. You can find western bots in comments section. Thank you.

Stop huffing and puffing on that copium

Chinese people's balance sheet damage coupled with sky high debt level, private and govt, results in a classical liquidity trap; which sees no light in the tunnel yet.

you are totally wrong, chinese can't own anything!!! all this is owned by the state, they can only be leased for 70 years. so you are completely wrong from the beginning of the video

Lol.... U.S housing prices, even in the top destination states, are falling at the same rate, since the last 1.5yrs. Canada is far worse.

0:40 this is the worst cherry picked comparison i have ever seen. You aren't allowed to 'own' land in China but merely lease it. So comparing it amongst the U.S population that actually own their land is wild.

$525 billion to Ukraine and $750 billion to illegals and $700 to Maui people that’s your president America..

The problem is that we can not trust the economic chinese's numbers. So we do not know where their economy is going in reality.

$525 billion to Ukraine and $750 billion to illegals and $700 to Maui people that’s your president America…

In conclusion, it is anticipated that China will ultimately resume its economic growth trajectory.

comentario muito estupidp

The fundamental problem is businesses have lost confidence in Xi Jing Ping's vision of China. Xi's anti-private market tendency in decision-making has proven to be disastrous. Most entrepreneurs have figured out the root of the problem but are not able to change the situation.