00:00 The real estate sector is experiencing a decrease in risk in China, especially after housing prices have reached and continued to decline at the highest rate for nine years.
00:12 So, at the beginning, we point out that housing prices have fallen at the fastest rate since 2014 in China.
00:20 Therefore, if we look at the average housing prices in 70 major cities, we notice that the rate of housing prices has dropped by 16.0% in October on an annual basis.
00:34 This is also due to the delay in the construction of 20 million residential units in Chinese cities. The total cost of the construction is 3.2 trillion yuan, which is about 440 billion dollars.
00:53 This is a very high cost and is not secure in China so far, according to the data. Therefore, there are demands today to remove restrictions on the purchase of real estate in China.
01:06 If we look at the procedures of the People's Bank of China, we notice that it has set the main interest rate for the rent for the year at 3.45% in its third meeting on Tuesday.
01:20 Also, if we look at the interest rate for five years, the People's Bank of China also set it at 4.2%.
01:30 But according to the Chinese analysts, these procedures carried out by the People's Bank of China are not enough so far, especially after the big boom that the construction sector witnessed in China.
01:43 But with the rise in the risk of bankruptcy and the collapse of the big Chinese real estate companies, including the largest real estate developer Evergrande in China and also Country Garden today, the sector is still suffering.
01:56 If we notice, the real estate investment in China has fallen by 8.5% from January to July 2023 in China, and it also represents 22% of China's economy. This share is less than 25% compared to previous years.
02:17 And of course, as we mentioned, with the big fall of the real estate companies from the banks, including Country Garden and Evergrande, the question remains, will the Chinese government really be able to save the real estate sector in China this year?
