"China now has two 'bombs', one 'bomb' is a real estate bubble and the other is a local debt. Any explosion to the Chinese economy is devastating."
“Why do local governments dare to bear so many debts, why Chinese financial institutions dare to lend money to locals, but also because of real estate.” Zhang Baoquan said the close relationship between the real estate bubble and local debt, and believed that the real estate bubble has one stone and two birds. effect.
Zhang Baoquan: I think China now has two “time bombs”, one is a real estate bubble and there is a bomb local debt. I think China needs to consider how to prevent the real estate bubble from bursting. This should be one of our strategic priorities. If we are still pushing ourselves up, we can not cure the bubble if it is not limited, once there is a bad possibility. It will burst quickly. Just like the grievances of the Yellow River, it keeps raising and raising, and once it is gathered, it will quickly flood the underside. Therefore, today's two land mines in China, I think have to be prevented, any mine explosion may make the results of reform and opening up for so many years may be seriously damaged, and even have to retreat many years ago.
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