Children play in front of a housing complex by Chinese property developer Evergrande in Beijing on July 28. After years of explosive growth, authorities launched a crackdown on excessive debt in 2020, squeezing financing options for property sector giants such as Evergrande as they struggled to make repayments and restructure mountains of debt. Now they face mortgage boycotts and government pressure to deliver pre-sold homes. Photo: AFP
Children play in front of a housing complex by Chinese property developer Evergrande in Beijing on July 28. After years of explosive growth, authorities launched a crackdown on excessive debt in 2020, squeezing financing options for property sector giants such as Evergrande as they struggled to make repayments and restructure mountains of debt. Now they face mortgage boycotts and government pressure to deliver pre-sold homes. Photo: AFP
Josef Gregory Mahoney
Opinion

Opinion

The View by Josef Gregory Mahoney

How understanding the roots of China’s property bubble can prevent a repeat of past mistakes

  • Beijing must ensure it avoids repeating past missteps as it advances new monetary and fiscal policies to stimulate growth and recovery
  • Otherwise, it risks creating a tech bubble that could hamstring its long-term ability to compete globally

Children play in front of a housing complex by Chinese property developer Evergrande in Beijing on July 28. After years of explosive growth, authorities launched a crackdown on excessive debt in 2020, squeezing financing options for property sector giants such as Evergrande as they struggled to make repayments and restructure mountains of debt. Now they face mortgage boycotts and government pressure to deliver pre-sold homes. Photo: AFP
Children play in front of a housing complex by Chinese property developer Evergrande in Beijing on July 28. After years of explosive growth, authorities launched a crackdown on excessive debt in 2020, squeezing financing options for property sector giants such as Evergrande as they struggled to make repayments and restructure mountains of debt. Now they face mortgage boycotts and government pressure to deliver pre-sold homes. Photo: AFP
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