Keyu Jin

One is the fiscal system, and one is a financial system.

So coming back to our local mayor economy, where did you think the local mayors got their funds?

Right, through real estate.

They sold land.

Real estate property developers came in.

They can develop the entire local economy because the services will come in, the jobs will come in.

And by the way, you're an equity owner of the entire city.

So you want these property developers around.

Many countries throughout history all have this property transition, right?

You need to wean the economy off of property.

In a good situation, it takes three to five years.

In a bad situation, it can take 10 years.

I don't know where China belongs currently, but the real estate collapse also meant the local finances, local government finances also shrunk dramatically.

Real estate was a really important part of the financial industry.

It brought that down.

Together, it really had a major impact on the economy, but also from the consumer side, their wealth was primarily tied into real estate.

Not the stock market, not other kind of investment opportunities.

It was real estate.

So they felt poor.

They consumed less.