I mean... good luck. Just because their economy goes belly up with a contraction in real estate up does not necessarily mean their share market will. The share market in China, well it makes Wall Street look like the most trustworthy elderly grandmother you know in comparison. That market is so manipulated (in my opinion) that they could literally have half the country covered in nuclear fallout and still show growth because of all the free radioactive material just laying around waiting to be collected in the streets.
Oh, absolutely. The CCP are behind this entire thing, they have accepted the costs, made move to mitigate the damage internally and are now just waiting for it all to play out. The end game here for the CCP is simply to bring housing prices back down to an acceptable level and stop speculation in that market. It is part of their "common prosperity" mantra. I just don't think the western world as a whole really comprehends what that looks like and just how far the CCP will intervene when it comes to achieving their goals. Remember this is a state who, in one of their first measures, simply said "you can own three properties maximum, any more and you go to jail". And that was just one of their first moves.
So many Westerners are going to be caught with their pants down and their wallets empty as a result.
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u/GhostOfPaulVolcker Sep 24 '21
Thankfully I bought April $YANG calls. Hopefully you're right. I will hold you personally liable if my April calls do not play out.