China's Housing Crisis and Economic Transformation

What was a significant factor contributing to China's housing crisis before the economic reforms?

• High levels of urbanization

• Overproduction of housing units

• Lack of modern amenities

• Excessive foreign investment

What change did Deng Xiaoping introduce that sparked a real estate revolution in China?

• Privatization of state-owned enterprises

• Introduction of foreign investment

• Transfer of land use rights

• Reduction of housing taxes

How did Evergrande initially fund its rapid expansion?

• Crowdfunding

• High-leverage strategies

• Government subsidies

• Foreign investments

What was a major consequence of the rapid growth in China's real estate sector?

• Decrease in housing prices

• Decline in construction jobs

• Increase in housing vacancies

• Reduction in urban population

What was the purpose of the 'three red lines' policy introduced by the Chinese government?

• To reduce housing prices

• To increase housing supply

• To control financial risk in the property sector

• To encourage foreign investment

What was the central government's concern regarding the housing market bubble?

• Lack of foreign investment

• Unsustainable price growth

• Excessive housing supply

• Decline in urbanization

What was a key factor that led to Evergrande's financial difficulties?

• Government bailouts

• High interest rates on loans

• Over-leveraging and cash shortages

• Lack of demand for housing

What demographic change is affecting China's housing market?

• Aging population

• Decline in young home-buyers

• Increase in birth rates

• Rise in rural population

What was a significant impact of the property sector's collapse on China's middle class?

• Improved housing conditions

• Higher wages

• Loss of savings and investments

• Increased job opportunities

What was the outcome of Evergrande's financial crisis?

• Merger with another developer

• Liquidation and asset stripping

• Government bailout

• Successful restructuring