First Chinese Municipal Government to Go Bankrupt, Housing Prices Fall by Over 90%

First Chinese Municipal Government to Go Bankrupt, Housing Prices Fall by Over 90%

First Chinese Municipal Government to Go Bankrupt, Housing Prices Fall by Over 90%

Hegang, a city in China’s Heilongjiang Province, was once made famous overnight for it’s extremely low real estate prices. Now, it has once again made news, this time for another reason. On December 23 of 2021, the Hegang human resources bureau announced their new fiscal restructuring plan. In it, they announced that they would stop hiring government staff. Although deleted shortly after, the words “fiscal restructuring” caught the attention of many, as the term was more or less a euphemism for what is essentially financial bankruptcy. Due to the lack of precedence, there is no official Chinese term to describe this financial situation, thus, it is for the meantime referred to as “fiscal reorganization”.