20 Million Unfinished Homes Drive Tens of Millions in China to Tears, China Collapse Irremediable!

20 Million Unfinished Homes Drive Tens of Millions in China to Tears, China Collapse Irremediable!

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After the Hong Kong High Court issued a winding-up order, Evergrande, the second largest property developer in China, announced that by the end of 2023, the amount of outstanding debt had reached about 300 billion yuan. Apart from the debts, Evergrande also left behind approximately 1.62 million unfinished properties, affecting 6 million homeowners.

In China's real estate market, due to presale regulations and lack of supervision, many homeowners entrusted their hard-earned money to developers, and even began repaying bank loans. However, due to various reasons, the buildings remain unfinished and cannot be completed. With the developers' debt crises, their funding is also in jeopardy. Chinese banks are unwilling to bear the risks, leaving all the risks to the homebuyers, so they are now in a predicament of losing both money and housing. 

Chinese real estate companies that have already defaulted or are on the verge of defaulting are not limited to just Evergrande. Despite the Chinese Communist Party's promise to ensure property is finished, the majority of unfinished residential projects are still highly unlikely to be completed. These could become ticking time bombs that may lead to social unrest. Once it explodes, the ones left injured will still be those unfortunate homebuyers.

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