After printing money to save the stock market, they started printing money to save the property market again. The second shantytown renovation and monetary resettlement is coming. This should be the last wave of escape.

Recently, the heads of the Ministry of Housing and Urban-Rural Development, the Ministry of Natural Resources, the People's Bank of China, and the State Administration of Financial Supervision and Administration held a meeting to promote the stability of the real estate market, which is the rescue meeting. They tried to implement the renovation of 1 million urban villages and dilapidated houses through monetary resettlement and other means.

Everyone should have a deep memory of monetary resettlement. The nationwide shantytown renovation boom in 2015 was triggered by the monetary resettlement of the CDB, which gave a shot in the arm to the property market that was about to adjust, allowing the people to increase leverage, blow up the real estate bubble, and the national housing prices skyrocketed. Everyone rushed to buy houses.

In just three years, the debt ratio of Chinese households soared from about 40% to 70%, 6 wallets were emptied, and the coffin was squeezed dry.

Now 1 million shantytowns have been monetized, and they are scattered in 35 cities. 1 million units are very small compared to the previous wave in 2015.

From 2015 to 2017, the average annual scale of shantytown renovation was 6 million units. Even between 2008 and 2014, the average annual scale was about 2 million units.

So this year's 1 million units is not a large scale, and it is impossible to roll out a large-scale nationwide. The stimulus to the property market is limited. And it should be mainly housing coupons, not cash. The effect is even more limited.

So this time the rescue of the market, the rebound of the property market is limited. The upper echelons asked everyone to buy at the bottom, which should actually be an opportunity to run away. It may also be the last wave of escape...$BTC