In the second and third quarters, the stock and property markets of China and the United States both reversed headwinds, and the property and stock markets ushered in rare double bulls. In the stock market, the Shanghai and Shenzhen 300 have returned to more than 4,700 years after a lapse of five years.
And the Nasdaq index in the United States is a record high. In terms of the property market, China's new house prices and the US house price index both set new records.
In 2020, when the global economic downturn and risk events frequently occur, why did the stock and property markets still perform so well?
If we look back at the long-term bull market in China's real estate industry, we can find the answer to the increase in asset prices in 2020. There is a widely circulated explanation for the long-term strong domestic housing prices.
The property market is a reservoir of currency. From the foreign exchange funds before 2014 to the spicy and sour noodles in recent years, the People's Bank of China has continuously issued more currency to the property market.