Evergrande: the end of China's property boom | FT Film

Produced, directed and edited by Daniel Garrahan

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[nicolasbenson]

fear a housing crash due to people buying homes above asking prices with little equity. If prices drop, affordability and potential foreclosures may arise, worsened by future layoffs and rising living costs. I want to invest more than $300k, but I'm not sure on how to mitigate risk.

[mosestekper]

The person who did the graphics should get a raise. Very intuitive and nice.

[Aquelll]

Also the fact that the buildings are shoddily built to siphon as much money from the project to private pockets. Even the finished projects are not of the quality expected by the investment.

[oneiljerry]

You don't know what the Chinese (stock)market will do, owning Chinese stock does not mean you own a part of the company, please be aware of that. BYD is making mini cars, hybrids and ice cars, not so much BEVs. Numbers are not looking that great too. Their batteries are great tho and will be used by Tesla as well.

[ANTHONY]

With the way the markets are moving, we might have to hold longer than expected, I think a video on "How to profit from the present market admist the recession will be more appreciated. I mean I have heard of people still making more than 100K within few months, and I'd like to know if it still possible.

[F-sx]

The topic of ghost cities and real estate overdevelopment in China has been a topic of discussion and concern for at least 10 years now. Crazy that this problem was allowed to grow so large when seemingly everyone saw it coming from a mile away. Classic human greed.

[louisgiokas]

There is a big miss in this video. The analysis does not take into account one of the key drivers, outside of raw urbanization. This is the use of property as investment. In the West, most people invest in stocks and bonds. In China the populace has little or no understanding of this. Thus, you see people buying multiple properties, mostly apartments, as investments. With rising prices, this made sense to them, and it was something they understood. One of the outcomes of this is the empty cities one sees only in China. Some of these are massive.
The sector is massive for another reason. Much of the income for local government comes from selling land. Thus, they encouraged this massive amount of property development.

[Brainfryde]

One of the problems that seems to be missed in this documentary is strange to the capitalist mind. A lot of property market is actually a lease, because China does not practice capitalism for individuals. Local governments lease property long term to individuals, using that as an income in place of taxes that do not exist. If buildings are not getting built, many local governments do not get financed from property leases, and thus cannot provide services. Emergency services, health services, etc. The financial impact to the world is going to be heavy, but it will lead to restructuring. In China itself though, the level of chaos and misery is not even known yet.

[MASTER.SON.]

50 years to own a modest apartment? Compared to 10 years in New York?? When you consider the time you can really appreciate the Chinese people who invested everything they had into pre-buying homes that were never finished. Also the foreclosure rate has gone to about 197% within the last 5 years.

[cryptobullcoin]

After 1 year, i endorse and appreciate financial time, which is responsible news group

[letsjoinhands]

Whether it's your superbly researched and immaculately written FT Newspaper and Editorial articles or your short documentary films, the quality of all your content is simply outstanding. Good Work and Keep it up Team FT!

[michaellan]

Evergrande's debt problem is tiny compared to China's High Speed Rails with over USD$2 trillion of debt. It borrows more money just to repay interests owing, excluding railway running cost. China built so many unprofitable high speed railways.

[cd]

You got to remember the construction was counted towards there gdp. So the ccp kept the construction going to artificially inflate their gdp.

[allyi]

19:05 come on FT you're better than that. Everybody knows the big 4 accountancy firms are incredibly inept at audit. It's part of the service!

[lliamjurdom]

Property greed and excess does this to people eventually .... it was going to happen and there is no sympathy for them ....

[tuomasholo]

5 months later and borrowers have stopped paying their mortgages. Banks have refused to allow any bank withdrawals. The failure of China’s banking system is closer than it appears.

[KJSvitko]

Empty cities with thousands of unfinished or unoccupied buildings.
How did this go unnoticed for so long.

[LiwaySaGu]

i've been seeing pictures of Chinese ghost cities on the internet for years, ... now I understand why there are such structures

[mattheww]

Whoever did the graphics/animation for this video - great job!

[REAVER]

I think Financial Times needs to film an update since China's economy is pretty much crashing, and someone in the comment had mentioned China's Tech.... Tech companies are pulling out of China now and moving to India.