China has been showing major foundation cracks in it's property bubble for years, but there has been little done to fix the impeding collapse. Today, in addition to recent rate rises, China's 5 major banks have pulled the plug on 1st time home buyer discounts. Bye Bye discounts . This will take away the 15% discount many Chinese have enjoyed on their first-time purchase of 344 sq feet of grossly inflated high rise condos in many a city in China.
China is in the first stage of grief: DENIAL, in regards to their property bubble. This was made most apparent on Feb 17th, when the gov't decided to stop publishing the countries index of property prices. No more property data in China. I'm sure that China doesn't want to publicize the declines when they start coming harder and faster each month. As stated in the above article:
"It's just like changing the scale of a thermometer, and then telling a patient they no longer need to take medicine for their fever, and the whole family cheers that the illness is cured,"
China's property bubble may be the largest real estate bubble of all time, making California's housing bust look like a Pomeranian next to a Great Dane. China's property bubble is the fat person that has to buy two airplane seats that makes you say, 'dammmmmmmmmmn that guy is fat.' You would think that after years of ridicule fatty would slow down, but instead he keeps pounding pound cake despite knowing this binge eating will kill him. China's property bubble is an economic cancer that keeps growing and growing. At this point, regardless of the diagnosis or treatment, the cancer will kill the economy. The crooked Dr. (the Chinese government) has been telling everyone for years that the sick are well, but now that the patient's skin is falling off and they are puking up blood, there is no way to hide the fact that someone is going to die. Still though, the Dr. says everything looks fine.
To be sure of this I found Humpty Dumpty translated in Mandarin Chinese: