Regarding China's real estate financial risks intensified, South Korea's Deputy Prime Minister and Minister of Planning Qiu Qinghao said that the South Korean government has launched the relevant working group and is discussing countermeasures.
According to the Yonhap News Agency, Qiu Qinghao made the above expression when Qiu Qinghao attended the Plenary Session of the South Korean Parliament Planning Committee on Tuesday (August 22).
Qiu Qinghao said that the proportion of China's economy in the global economy is nearly 20%, and the proportion of foreign exports in South Korea is also quite large.However, how the Chinese government responds to the relevant situation of domestic financial companies, etc., needs further observation.Therefore, he believes that it is too early to predict how much impact in China's economic situation will have on South Korea.
Qiu Qinghao emphasized that due to the exposure of the risk exposure brought about by Chinese real estate developers' debt issues to Korean companies, the direct impact on the Korean side will be limited.
Reuters and Bloomberg reported that Chinese real estate giants have been in a financial predicament in recent years; except for Evergrande, Country Garden, the largest private housing company in China, has not paid debts on time this month.Last week, it was also in the crisis of debt default.
The debt crisis of the real estate industry has also brought a series of chain reactions. China ’s asset management giant China Plant Group has reportedly stopped paying for wealth management products and will start debt restructuring.
Economists believe that the risk of China's real estate industry may spread to a wider range of economic fields, and the government must take strong measures to save the precious real estate industry.
