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Originally Posted by fishtank
there will be no bail out , as ccp wanted the real estate to cool down. Its a after effects of governments policy change of took away the real estate companys credit, thats what lead to their liquidity problems. Before the real estate company use deposit from new buyers to build presold house, but the problem its theres no new money and there still lots of undelivered house that people had paid for about 1 million units or so... its a huge ponzi scheme .
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You are completely right. The whole Chinese economy and stock market is one MASSIVE ponzi scheme. I had fully expected it to explode at some point, just like crypto will, but I honestly never expected an implosion triggered by their own government. The Chinese economy has become big enough, and there is enough foreign money tied up in it for this to have a large cascade effect throughout the major economies of the free world.