[The Epoch Times, July 17, 2022](The Epoch Times reporter Luo Ya reported) Recently, with the turmoil of landlords of unfinished buildings in mainland China stopping loans, the Financial Times under the Central Bank of the Communist Party of China claimed that relevant departments and With the “joint efforts” of real estate companies, many buildings that have been suspended have begun to resume work. Mainland netizens questioned the authenticity of the news and asked him to “report it after the house is built and handed over”.
According to the rough statistics of “First Finance and Economics” as of July 14, there are about 150 real estates with outages in China, covering about 20 provinces including Henan, Hunan, Jiangxi, Hebei, Guangxi, and Shandong, and nearly 70 city (district).
According to the GitHub website “Summary of Loan Suspension Notices for Unfinished Buildings in Various Provinces and Cities across the Country”, as of 8 p.m. on the 16th, 286 properties have issued “All Owners Loan Suspension Notices”, covering 25 provinces in mainland China.
This loan suspension has triggered further turmoil in China’s economy, and the relevant departments in the mainland have to come forward to deal with it.
“Financial Times” reported on the evening of the 15th that the compulsory loan suspension involved developers such as Evergrande, Greenland, and Aoyuan; judging from the responses from all parties, the core of this incident was “guaranteing the delivery of buildings”, promoting delayed delivery or existing For properties with delayed delivery risks, the construction progress will be accelerated. After the incident attracted attention, with the joint efforts of real estate companies and multiple departments, some of the previously disclosed buildings that had been shut down have been under normal construction, while others have been reported to have resumed work.
However, the report cites only four relevant projects. Among them, Jiangxi Ganzhou Greenland Expo City Commercial and Residential Community claimed that the current construction is normal. The Ganzhou Economic and Technological Development Zone government purchased some unconstructed plots of Greenland and returned nearly 400 million yuan of land transfer fees for Greenland for project construction.
For the Mingmen Cuiyuan project in Zhengzhou, Henan, multiple departments have established special fund accounts for the resumption of work and production in the Cuiyuan. Guangzhou Aoyuan Yunhe Mansion and its partner Greentown Management Group will start to enter the site this month to promote the resumption of work and production of the project as quickly as possible. As for the Shenzhen Kaisa Yee Banshan project, the report claimed that the online notification was false, the project was under normal construction, and there were more than 300 construction workers on site.
Some netizens responded to this, “Why did you go early? You have to make a fuss.” “Laughing to death, there has been no movement for so long, and once the group broke the loan, work resumed.”
“No trouble, that’s the fish on the chopping block. I like a stable society, but that doesn’t mean I like a deaf and dumb society.”
Some netizens also said, “I don’t believe it.” “It doesn’t feel so simple. The unfinished end means that there is no money. Now that the real estate is in a downturn, it is unlikely that a sum of money will suddenly appear.”
“It’s better not to report this kind of news, everyone is not a fool.” “The owner of the unfinished building in Zhengzhou said that fraudulent resumption of work has been staged many times. The wolf is coming, and the wolf is coming again.”
“It won’t be too late to report after the house is built and handed over. Now I’m looking for two or three people to grind foreign workers every day and let me repay the loan? A fool can’t cheat like this.”
“At present, there are almost 300 real estates with flexible loan repayment (loan suspension), and tens of thousands of units are unfinished. How many can resume work?”
On July 14, thousands of property owners gathered at the Xi’an Banking and Insurance Regulatory Bureau to protest, accusing them of ignoring the bank’s violations, but not acting or punishing them. The property owners shouted slogans such as “illegal lending”.
Gong Shengli, an independent mainland economist, told The Epoch Times on July 15 that the large-scale real estate loan suspension was mainly related to some real estate companies in debt crisis.
He believes that the development of China’s real estate for more than 30 years has not created a lot of wealth for the society, but has accumulated a large amount of debt in China’s real estate. Tens of billions. And China’s annual GDP just exceeded 110 trillion last year. If the debt reaches one trillion, this is a terrible phenomenon.”
Gong Shengli believes that the Beijing authorities may take two steps next. The first step is to select some real estate projects that have stopped lending, and they have to operate. If they cannot continue, they may give up and let them die. The second step is supervision, and they must kill chickens for monkeys to see. If the loopholes are not blocked may spread across the country.
He stressed that if it is not handled properly, there may be catastrophic consequences. At present, China has no ability to solve this problem.
Responsible editor: Wu Hao#