Why investors are worried about China’s Evergrande failing
The Decibel
00:00
Why Doesn't the Government Do Something to Reduce House Prices?
In some parts of china, the ratio of house price to income runs as high as 50 times. So that means 50 times your annual income to buy a house is a huge sum for most ordnaring people. The real fear is, because the vast amount of families, all their wealth is in their home, and there is not much return on rental. And so if they intervene in a way that really drives prices down, then that could lead to a huge amount of anger and potentially social unrest.
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