China's Real Estate Market, Like a Massive Bubble

In august two thousand and 20, the chinese government introduced new laws to force real estate developers to d leverage. The most popular investment by choice in china, by a long way, is property. House prices have just continued to grow because there's just always people buying, buying, buying. So one of the rules that they imposed is that you need to get your debt to equity ratio down to a maximum of a hundred %. O and as we said before, the problem is that this company's debt to Equity ratio in 20 19 was 200 and forty% so they had to get their debt levels down. And i mean, on the surface, that's like a good thing