Luo Shuyi: China's Sick Real Estate Has Created Too Many Gamblers
Wenzhou is the pacesetter of China's private economy; the Wenzhou phenomenon has drawn worldwide attention; and the people of Wenzhou are hailed as the Jews of the East.
However, on July 9, 2014, an article titled "Wenzhou's 'Second Wave' of Crisis: Most Fell in Real Estate Investment" published by 21st Century Business Herald showed that Wenzhou, once the birthplace of the property speculation groups, has this time sunk into the mire of real estate. The continuous decline of housing prices nationwide, like falling dominoes, is spreading rapidly into Wenzhou's real economy. Since the beginning of this year, especially since June, several cases have been exposed of leading enterprises in Wenzhou's industries suffering broken capital chains or their owners "running away." Unlike the wave of private-enterprise crises in 2011, which was concentrated in platforms such as guarantee companies, almost all the enterprises involved this time had invested relatively deeply in real estate.
2014-07-10
