According to Wiki The ‘three red lines’ are what did it.
“In 2017, Chinese Communist Party (CCP) general secretary Xi Jinping's administration started
to tighten the real estate market based on the principle that "houses are for
living, not for speculation." These remarks came during
the 19th CCP National Congress.
The three red lines were the most stringent regulatory
measures based on these remarks.[4]: 73 These rules were issued in 2020. They
stated property should adhere to the following rules:
- Liabilities should
not exceed 70 percent of assets (excluding advance
proceeds from projects sold on contract)
- Net debt should not be greater than 100
percent equity.
- Money reserves must be at least 100 percent of short
term debt.”
It worked, as can be seen in the graph in an earlier
posting.
CONCLUSION: Strangling the finance sector works, on it’s
own, although questions of Land asset values may also be under scrutiny in
PRC.
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