Why Evergrande Collapsed - Our Chinese Houses Crumbled - On the ground in China

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[–]magnora7[S] 2 insightful - 2 fun2 insightful - 1 fun3 insightful - 2 fun -  (1 child)

I think some of the buildings are good quality, but they're just building so many at such a rapid pace, many never even having any intention of being lived in but instead used as a store of value. But if 30% of the buildings are unusable garbage, then that could easily cause a real estate collapse if people are buying assets that won't actually hold their value.

[–]Gravi 3 insightful - 2 fun3 insightful - 1 fun4 insightful - 2 fun -  (0 children)

They do look good at first glance, I do believe you are right, it's mostly for value, for the capital, the money. As the many products the Chinese make, it's mostly rapid, an enormous amount and mainly for money and then comes the real question, will the product hold?