India’s Gains from China’s Property Market Slump


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            <p style="color:black;">China's property market is taking a significant downturn. Real estate in China's downslide is driven by a regulatory crackdown on excessive borrowing by property developers, leading to a liquidity crisis, impacting China's GDP and global economy. Pointing out to the global economy, the dependency on raw materials from China has been impacted greatly. Foreign investment is tearing down, which in turn has become a great opportunity for the Indian property market. Amid the crisis in real estate in China, India finds itself poised to benefit from these challenges resulting in various positive outcomes.
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              <p style="color:black;">Considering the long-term effect of the dig of China's property market there will be a huge shift in India's manufacturing sector giving an overall boost to India’s economic landscape.
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            <h2 style="font-size: 18px;">China Property Market Decline
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            <p style="color:black;"> The world’s second-largest economy is facing substantial challenges, including a growing list of problems in the real estate sector, the semiconductor industry, and labor market gyration.
              The housing market crisis is highly disruptive given that China's property sector accounts for 20% of its GDP. Additionally, China, the world’s most populous country, is grappling with a major youth Unemployment crisis, with 21% of its urban youth unemployed.
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            <h2 style="font-size: 18px;">Ongoing Crisis in China Real Estate: Surplus and Imbalance</h2>

            <ul style="color:black;">
              <li style="color:black;">With almost 7 million empty homes or 7 billion square feet of unused built-up space, China's property market is in a crisis. With 1.4 billion people livin.</li>
              <li style="color:black;"> More than 2 dozen developers already defaulted and have hit rock bottom and this is due to insufficient effective domestic demand.
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              <li style="color:black;"> Beijing plans to rescue China with a rescue package that includes.
              </li>
              A. Down payment reduced by the Central Bank of China.
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              B.  China’s central bank deputy governor Tao Ling, is planning a fund of swords that would provide 300 billion Yuan ($42.25 billion) to the financial institute  to lend to local state-owned enterprises so that they can buy unsold apartments that have been already built.
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              C.   Slashed mortgage rate, cut down payment requirement by 5 % for first-time buyers and those looking to get a second property. Rates are as follows:
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              <table style="border-collapse: collapse; width: 100%; margin-bottom: 20px; color: black;">
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                                                      <th style="border: 1px solid #dddddd; background-color: #f2f2f2; text-align: left; padding: 8px;">First-time buyer </th>
                                                      <th style="border: 1px solid #dddddd; background-color: #f2f2f2; text-align: left; padding: 8px;"></th>
                                                      <th style="border: 1px solid #dddddd; background-color: #f2f2f2; text-align: left; padding: 8px;">Second – home buyer</th>
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                                              </thead>
                                              <tbody  style="color:black;">
                                                  <tr>
                                                      <td  style="border: 1px solid #dddddd; background-color: #f2f2f2; text-align: left; padding: 8px;">20%	 	</td>
                                                      <td  style="border: 1px solid #dddddd; background-color: #f2f2f2; text-align: left; padding: 8px;">Earlier
                                                      </td>
                                                      <td  style="border: 1px solid #dddddd; background-color: #f2f2f2; text-align: left; padding: 8px;">30%
                                                      </td>
                                                  </tr>
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                                                      <td  style="border: 1px solid #dddddd; background-color: #f2f2f2; text-align: left; padding: 8px;">15%</td>
                                                      <td  style="border: 1px solid #dddddd; background-color: #f2f2f2; text-align: left; padding: 8px;">Now
                                                    </td>
                                                      <td  style="border: 1px solid #dddddd; background-color: #f2f2f2; text-align: left; padding: 8px;">25%
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                                                  </tr>
                                                
                                              </tbody>
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            <h2 style="font-size:18px";>Some Stocks Surge Amid Economic Challenges
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            <ul>
              <li  style="color:black;">Stock of property developers shot up claimed to be double-digit like:
              </li>
              A. Fantasia: One of the property developers saw its stock jump by 63% .  <br/><br/>
              B. KWG: Reported a 40% increase in its share price.<br/><br/>
C. Sino: Ocean group also experienced a 40% surge in its stock.<br/>
<li  style="color:black;">China’s authority launched a Campaign- swap old for a new scheme which encourages people to replace their old apartments with new ones attracting interest.However, this scheme faces a major hurdle which is struggling to sell their current Homes. 

</li>

              
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            <h2 style="font-size:18px";>Global Opportunities for India
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            <p  style="color:black;"><h3 style="font-size: 16px; font-weight: normal;">1. Reconfiguring Global Supply Network</h3>

            Many nations and businesses are actively looking for raw materials, intermediate goods, and finished products from sources other than China. This change is especially noticeable in important industries like electronics, drugs, clothing, and autos.
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Consider this example; India's electronics exports attained $20 billion in 2023 as an outcome of big businesses like Apple expanding their manufacturing operations there. India's reputation as the "pharmacy of the world" was cemented in 2022 when it exported pharmaceutical products valued at $25.39 billion, largely because of its vast capabilities in the manufacturing of generic drugs. With a $223 billion market capitalization, the textile sector is expanding along with global supply chains, making India a desirable destination for textiles because of its strong manufacturing capabilities and affordable prices.
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Additionally, the automotive with seen improvements in the production of electric vehicles, the sector produced over 4.5 million vehicles in 2022, strengthening India's position in the global auto industry. This diversification is an opportunity for India to strengthen its position in international supply chains and a calculated risk management tactic, which will promote stability and economic growth.
 
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<h3 style="font-size: 16px; font-weight: normal;">2. Leveraging Trade Agreement</h3>

India can also improve its access to the global market by leveraging its current trade agreements and strategic partnerships with nations like the US, Japan, Australia, and the EU.
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<h3 style="font-size: 16px; font-weight: normal;">3. Investment Destination</h3>

China’s economic slump has also reduced its attractiveness as an investment destination for foreign capital. India can capitalize on this window by offering a stable and conducive business environment, easing regulatory hurdles, providing tax incentives, and facilitating land acquisition and labor reforms.

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            <h2 style="font-size:18px";>Conclusion</h2>
            <p  style="color:black;">            He Kang, a former deputy head of the National Bureau of Statistics, claims 
              that China's property market has enough empty homes to house three billion people.<br/><br/>
              <ul>

<li  style="color:black;">That is approximately ten times the population of the United States.</li>
<li  style="color:black;"> 15 times the population of Western Europe.</li>
 <li  style="color:black;">2.14 times the population of India.</li>
<li  style="color:black;"> 140 times the population of Beijing, to put things into perspective.</li>
</ul>
 
Whether China can overcome this setback, even with government intervention, is the true question. Beijing cannot buy every empty house in the nation, and the government does not have limitless funds. Some developers might succeed, while others might not get support.
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