Recently, Cao, the glass king of Fuyao Group, mentioned his views on the current domestic real estate in this year's China Blue Book Forum, which also attracted great attention from the outside world.
Cao mentioned that it is harmful for laymen to do real estate. Let people who know how to do it engage in related industries, instead of blindly pursuing interests, resulting in their own debts in real estate. People who know how to do it should do it. Just like Li Ka-shing, let people who don't understand get in touch, and ultimately harm others and themselves.
In fact, Cao mentioned some suggestions on China's real estate economy more than once in public. In an interview with the media, he once said that China lacked the demand for a large number of houses in the past, but now it is still building a large number of houses. In fact, to put it bluntly, many real estate developers are willing to borrow money to build houses in order to chase more economic dividends. In particular, many banks have been implementing a relatively loose monetary policy in order to lend to real estate enterprises. Therefore, many real estate developers take bank loans to invest in real estate, so the whole market atmosphere has formed a wave of hoarding houses and real estate speculation, which eventually leads to a long-term high debt ratio of many real estate enterprises.
At present, the real estate development market in China is in a state of surplus. Coupled with the impact of the epidemic in the past two years, many people have to suspend their plans to buy a house. Even many owners who hold houses have to choose to sell their properties in order to withdraw funds. As a matter of fact, most houses in China today have indeed lost their residential properties and become commodities for investment tenants to speculate.