Chinese Homebuyers' Confidence Have Been Knocked Down, S&P Says

The video discusses the current state of the housing market, focusing on new policies and their impact on market confidence. It compares the situations of major developers like Evergrande and Country Garden, highlighting their influence on buyer confidence. The potential effects of a default, including impacts on home sales and related industries, are explored. The liquidity challenges faced by developers and the need for restructuring are addressed. Finally, the role of government support and the differences between state-backed and private developers are examined.

What is the main concern of home buyers in the current housing market?

• High interest rates

• Not receiving the homes they paid for

• Lack of available properties

• Increasing property taxes

How do Evergrande and Country Garden compare in terms of market impact?

• Country Garden is more stable and less known

• Both are small developers with minimal impact

• Evergrande is larger and more influential

• Both are large developers with a significant broadcast effect

What is a potential consequence of a default by Country Garden?

• Improved market confidence

• Increased home sales

• Negative impact on home sales and related sectors

• Stabilization of the housing market

What is a major issue faced by many developers according to the third section?

• High levels of cash reserves

• Excessive government support

• Overabundance of construction projects

• Low cash levels leading to restructuring

How does government backing affect home buyer perception during a crisis?

• It increases concern about delivery

• It has no effect on buyer perception

• It reduces concern about delivery

• It leads to higher property prices