Recently, Qiu Baoxing, a former vice minister of the Ministry of Housing and Urban-Rural Development, made a high-profile remark, warning that the collapse in housing prices could lead to the collapse of people's wealth. He noted that about 70 percent of China's wealth is stored in the real estate market. By comparison, U.S. housing wealth accounts for only 28% of total wealth, highlighting China's high dependence on the real estate sector. However, some people don't seem to be aware of this reality.
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Today, I would like to talk to you about the possibility of a collapse in China's housing prices and the possible wealth risks behind it. Recently, Qiu Baoxing, former vice minister of the Ministry of Housing and Urban-Rural Development, made a cautionary remark, he believes that if housing prices really plummet, then the wealth of our country's people will evaporate without a trace. What is worrying is that Qiu Baoxing's remarks have not attracted enough attention, and many people are still blindly treating this issue.
Let's take a look at the statistics provided by Qiu Baoxing. According to him, about 70% of China's wealth is stored in the real estate market. That's a staggering number! By comparison, the situation is much better in the United States, where their housing wealth accounts for only 28 percent of their total wealth. This contrast highlights the high dependence of China's economy on the real estate sector. Therefore, once housing prices plummet, a decline in wealth will be inevitable for ordinary Chinese people.
We cannot ignore the gravity of the problem. In China, owning a house of your own has always been people's pursuit. For those who haven't bought a home yet, the collapse in house prices is undoubtedly good news. However, this can be a disaster for those who already own a property. Their wealth will be hit so hard that overnight, their hard-earned assets may disappear.
Qiu Baoxing's remarks caused heated discussions among netizens. Some say that if house prices do plummet, it will be the hope of those who do not have a house, and for those who already own a property, they want prices to continue to rise. This divergent expectation has led to disagreements and contradictions in Chinese society on the issue of housing prices.
However, let's be clear: the collapse in housing prices is a complex issue that will have a ripple effect not only on individual and household wealth, but also on the economy as a whole. As the pillar industry of China's economy, the development and stability of the real estate market are crucial. If house prices plummet, it would trigger a chain reaction that could lead to loan defaults, downside risks that could weigh on the banking system and the economy as a whole.
In order to avoid this risk, the government and relevant departments need to take proactive measures to stabilize the real estate market. While many people have benefited from rising house prices, an overheated market has also raised many problems. The government should strengthen regulation to promote the healthy and sustainable development of the real estate market. In addition, each of us should also maintain a rational view on the issue of housing prices, not blindly chasing short-term interests, but considering the long-term development and social stability of the real estate market.
In short, Qiu Baoxing's remarks remind us that we cannot ignore the impact of the collapse in housing prices on the wealth of ordinary people. In China, the real estate industry plays an important role, and stabilizing housing prices is an important part of maintaining economic stability and social harmony. We need the active intervention of the government and the rational perception of everyone to work together to create a healthy and sustainable environment for the real estate market.