Expect more Tightening in China's Property Sector, Says Morningstar's Zhong

The video discusses the Chinese housing market's state over the past seven years, highlighting rising home prices and the impact of government policies. It addresses the resilience of the market despite affordability issues in tier-one cities and the potential risks of high home prices. The video also covers inventory challenges, supply constraints, and the effects of government policies on developers and buyers.

What has been the trend in average home prices in the Chinese housing market over the past seven years?

• Prices have fluctuated without a clear trend.

• Prices have remained stable.

• Prices have consistently decreased.

• Prices have shown a general upward trend.

What is a key risk associated with persistently high home prices in China?

• A rise in construction projects.

• A decrease in urbanization.

• Increased foreign investment.

• A strong government response with policy tightening.

How might government policy affect the property market over time?

• It will encourage more investment from developers.

• It will lead to a more efficient market.

• It will cause the market to become more distorted.

• It will have no impact on the market.

What is one reason for the current high level of home prices in China?

• Government subsidies for home buyers.

• High levels of new construction.

• Increased foreign demand.

• Low levels of supply due to past destocking.

What challenge are developers facing under current government policies?

• Falling contract sales and capped selling prices.

• Increased land acquisition costs.

• A surplus of unsold homes.

• Easier access to financing.