>

Saw a more recent youtube video on the unfinished apt problem there and more recently they were only giving 50 year leases.  Buyers were not happy but continued buying.
Not hard to understand.
Better pop the bubble when it's still managable. Without the three red lines, over time you get into a situation like sitting on a million megatons of TNT drowned on petrol while smoking a cigar. >

Mmm, I'm not questioning whether it's wise to deflate the bubble, but it seems strange to deflate it by immediately bankrupting one of your largest real estate firms (lowering supply). A sudden collapse is typically way more painful than a slow one after all, especially right after zero-covid lockdowns.
Why not, for example, set a higher debt ratio limit, then have pre-set points where the limit lowers? Or open investment into foreign equity to let some air out of real estate? Or any number of slower ways?
Basically, why Three Red Lines specifically. I would have thought the CCP was aware, or capable of being aware of the debt levels that Evergrande (and other real estate firms) were running at. >


Mmm, I'm not questioning whether it's wise to deflate the bubble, but it seems strange to deflate it by immediately bankrupting one of your largest real estate firms (lowering supply).

How does it lower supply? The CCP can just take that land and redistribute it. >

The supply of apartments is increased by firms that build apartments. In China you don't actually own the land the building is on anyway. >

Is that not the case for the west as well? Isn't it normal to have separate entity for the land and building? 
Say the landowner can lease the land for Company A to set up a hotel and pay a monthly rent to the landowner. This creates a cheaper upstart cost of instead having to pay millions to build something on a piece of land.
Or is this a cultural shock? >

In general, in the US and UK (And I think in other EU nations? Not 100% on that), you own the land under your house. In some cases, you even own the geological rights etc. for any underground resources as well.
For apartments, of course, typically you do not own the land under the apartment unless you own the entire building. Landowners may lease land to construction companies as you describe as well, depending on what's most advantageous at the time (hotels often DO own the land they sit on).
In China, of course, you not only don't own the land, you don't even really "own" the house / apartment. You actually have a 99 year lease on the building.