Sure, central gov _chose_ to cracked on on the sector, but the denial is that will lead to doomer level of collapse portrayed in western media. Here's a recent primer on PRC land finance and why market remains resilient / impact on gov finance overblow.
The real denial is western analysts with little understanding of why real estate crack down won't lead to PRC collapse. At end of the day, realestate is about as wasteful as US extravagant health care spending in % terms. Inefficient sure, but not end of the world in terms of misallocation. Even less so when ~100m surplus/vacant housing units still not enough for 200m that needs to be rehomed to bring urbanization from 65% to 80% in next 20 years.
https://www.bloomberg.com/news/newsletters/2023-03-25/china-...
The real denial is western analysts with little understanding of why real estate crack down won't lead to PRC collapse. At end of the day, realestate is about as wasteful as US extravagant health care spending in % terms. Inefficient sure, but not end of the world in terms of misallocation. Even less so when ~100m surplus/vacant housing units still not enough for 200m that needs to be rehomed to bring urbanization from 65% to 80% in next 20 years.