In the 20 years since China’s State Council officially recognized the real estate sector as a “key industry,” the sector has developed rapidly, driving GDP growth and inspiring millions of Chinese people to dream of owning their own home. Ta. But the sector is currently beset by problems ranging from high prices to high debt levels, which threaten to hurt growth at a time when China can’t afford it. Although there is no private land ownership in China, households are keen to own their own homes to improve living conditions and accumulate wealth. Due to capital controls, Chinese people cannot easily buy overseas assets, and China’s stock exchanges are not performing well. China does not tax residential real estate, capital gains or inheritances, promising large increases in value. As a result, real estate becomes the most attractive form of asset to own. The Chinese government has repeatedly tried to curb housing prices… [b]
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