Pan Shiyi Breaks Silence After Years, Calls China's Property Market a Ponzi Scheme
After three years of silence, Pan Shiyi, the renowned Chinese real estate businessman and founder of SOHO China, published an article describing the development of China's property market over the past 30 years as a "Ponzi scheme." He pointed out that the structure where developers rely on pre-sale funds, companies repay old debts with new ones, local governments subsist on land sales, and homebuyers believe property prices will always rise, will collapse if any single component fails. Pan stated that the practices of some real estate companies are no different from a Ponzi scheme, warning that industry losses amount to trillions of RMB. He emphasized that China's property market has been falling for 47 consecutive months, and rebuilding confidence is paramount.
📋 Article Processing Timeline
- 📰 Published: April 17, 2026 at 11:20
- 🔍 Collected: April 17, 2026 at 11:31 (10 min after Published)
- 🤖 AI Analyzed: April 17, 2026 at 17:11 (5h 40m after Collected)
Central News Agency
(Central News Agency, Hong Kong, April 17, Reporter Zhang Qian) Pan Shiyi, a renowned Chinese real estate businessman and founder of SOHO China, who had been silent for three years, recently published an article describing the development of China's property market over the past 30 years as a "Ponzi scheme."
According to reports from mainland and Hong Kong media, Pan Shiyi published an article titled "My Reflection" on his personal WeChat public account yesterday, recalling the early days of commercial housing development in mainland China in 1998. He mentioned that the industry went to Hong Kong to learn sales methods, picking up terms like "mortgage," "property development," and "launching a project." "Later, we also learned the practices of high leverage and high turnover, and they quickly changed their flavor in China."
Within a few years, industry competition was no longer just about who could build and sell houses well, but about who "acquired more land, financed faster, and expanded more aggressively."
The article states that developers survive on pre-sale receipts, companies revolve by borrowing new money to repay old debts, local governments live off land sales, and homebuyers believe property prices will always rise. "These four things are tied together, and if any one breaks, the others will follow."
Pan Shiyi pointed out that for a considerable period, the practices of some real estate companies were no different from a "Ponzi scheme."
The article states that the industry appears prosperous on the surface, but is actually becoming increasingly fragile. The losses incurred now amount to trillions of RMB, bringing pain to countless families. "We, who are in real estate, should all reflect on what we have learned from this."
The article concludes that the Chinese real estate market has reached this situation due to the combined effects of systems, finance, local government finances, corporate expansion, and social expectations, although the specific crimes of some real estate developers have been identified by judicial authorities.
He stated that China's property market has been falling for 47 consecutive months, and confidence is the most important factor. Confidence is built on integrity, and "good houses" are built on integrity. "We look forward to this day coming soon."
According to reports, 62-year-old Pan Shiyi moved to the United States after selling a large number of assets in 2014. The IP address of the article he published yesterday also shows him to be in the U.S. In recent years, he has quietly returned to China and stated that he has always been a Chinese national.
"Ponzi Scheme" is an illegal financial fraud method originating in the early 20th century, which attracts investors by promising high returns (high returns, low risk) but has no real investment operations. Major cases include the late American fraudster Bernard Madoff, who defrauded tens of thousands of people worldwide years ago. During the 2008 financial crisis, he could no longer meet the increasing demands for investment withdrawals, and the scheme was exposed. (Editor: Chou Hui-ying) 1150417
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(Central News Agency, Hong Kong, April 17, Reporter Zhang Qian) Pan Shiyi, a renowned Chinese real estate businessman and founder of SOHO China, who had been silent for three years, recently published an article describing the development of China's property market over the past 30 years as a "Ponzi scheme."
According to reports from mainland and Hong Kong media, Pan Shiyi published an article titled "My Reflection" on his personal WeChat public account yesterday, recalling the early days of commercial housing development in mainland China in 1998. He mentioned that the industry went to Hong Kong to learn sales methods, picking up terms like "mortgage," "property development," and "launching a project." "Later, we also learned the practices of high leverage and high turnover, and they quickly changed their flavor in China."
Within a few years, industry competition was no longer just about who could build and sell houses well, but about who "acquired more land, financed faster, and expanded more aggressively."
The article states that developers survive on pre-sale receipts, companies revolve by borrowing new money to repay old debts, local governments live off land sales, and homebuyers believe property prices will always rise. "These four things are tied together, and if any one breaks, the others will follow."
Pan Shiyi pointed out that for a considerable period, the practices of some real estate companies were no different from a "Ponzi scheme."
The article states that the industry appears prosperous on the surface, but is actually becoming increasingly fragile. The losses incurred now amount to trillions of RMB, bringing pain to countless families. "We, who are in real estate, should all reflect on what we have learned from this."
The article concludes that the Chinese real estate market has reached this situation due to the combined effects of systems, finance, local government finances, corporate expansion, and social expectations, although the specific crimes of some real estate developers have been identified by judicial authorities.
He stated that China's property market has been falling for 47 consecutive months, and confidence is the most important factor. Confidence is built on integrity, and "good houses" are built on integrity. "We look forward to this day coming soon."
According to reports, 62-year-old Pan Shiyi moved to the United States after selling a large number of assets in 2014. The IP address of the article he published yesterday also shows him to be in the U.S. In recent years, he has quietly returned to China and stated that he has always been a Chinese national.
"Ponzi Scheme" is an illegal financial fraud method originating in the early 20th century, which attracts investors by promising high returns (high returns, low risk) but has no real investment operations. Major cases include the late American fraudster Bernard Madoff, who defrauded tens of thousands of people worldwide years ago. During the 2008 financial crisis, he could no longer meet the increasing demands for investment withdrawals, and the scheme was exposed. (Editor: Chou Hui-ying) 1150417
Choose to stand with facts, every sponsorship you make is a force to protect press freedom.
Download the CNA "First-hand News" APP to stay updated with the latest news.
The text, images, and videos on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.
FAQ
Why did Pan Shiyi describe China's property market as a "Ponzi scheme"?
He argued that the interdependent structure where developers rely on pre-sale funds, companies repay old debts with new ones, local governments subsist on land sales, and homebuyers believe property prices will always rise, is unsustainable and will collapse if any single component fails.
What is the current state of China's property market according to Pan Shiyi?
According to Pan Shiyi, China's property market has been falling for 47 consecutive months. He states that while the industry appears prosperous on the surface, it is increasingly fragile, leading to trillions of RMB in losses and pain for countless families.