House is being sold for watermelons!!

MANOJ KUMAR N

Usually we see ironware, mangoes, beer bottles, ice creams being sold in the villages. But in china, houses are selling watermelons, wheat, and garlic together. Are you wondering what that is? Are you doubting whether this is true or not? Why delay.. read this story.. you will know the real matter.


A news that a real estate developer sold a house to watermelons appeared in Chinese newspapers. "A real estate developer in Nanjing is accepting 20 yuan per kilo of watermelons as firm home purchase payments," China's state-run Global Times recently ran a great story. But some experts suspect that all this is a story written to cover up the real situation in China. Because.. the real estate companies there are committing debt evasion.

Recently Shanghai-based Shimo Group defaulted on interest principal payments on billion dollar bonds. The company is the 14th largest real estate company in china in terms of sales. It is also believed to be one of the biggest evasions of dollar payments in China. The company has about 5.5 billion dollars in foreign debt. The company has attracted the attention of the world with a five-star hotel built in a previously closed quarry. The company was also hit hard financially by the ever-grande crisis as regulations on China's real estate lashed out.


A recent Goldman Sachs report revealed that China's real estate market is worse than it looks. 22 issuers of high-yield bonds in China's property sector said they have avoided or delayed payments on dollar-denominated bonds this year. Financial experts say that the real estate market will not recover as easily as the stock market.

A quarter of China's GDP comes from the real estate sector. Recently, the sales of top 100 developers in the country fell by half in the first four months. The amount of loans given to this sector has also decreased. In 2021, there was a 14 percent decline in constructions. Millions of square feet of structures remain unfinished.


For the first time in six years, house prices started falling from last September. As a result, the customers who paid for the construction in advance have suffered losses. As a result, buyers are not coming forward. 70 percent of China's urban wealth is invested in housing. In this background, the central bank has stepped in to support the real estate companies. This has become a big challenge for the Communist party when Xi jinping will assume power for the third time in the future.

For more interesting updates click and follow Indiaherald WhatsApp channel

Find Out More:

China realestate

Related Articles: