Chengdu Authorities Refute Rumors of Large-Scale Demolition and Relocation, While A-Share Chengyu Index Soars
On October 16th, in response to a demolition and relocation map circulating online, the Chengdu Housing Team issued a statement clarifying that the projects involved are from publicly available data and have been gradually announced over a year or longer period, not recent concentrated plans. Authorities confirmed that all compensation standards are based on official policies and it’s impossible for individuals to receive tens of millions in payouts as rumored.
In recent days, rumors have spread like wildfire online claiming that Chengdu, the capital of China’s Sichuan province, is set to undergo massive demolition and relocation that could displace residents and businesses across large swaths of the city. Speculation mounted that some households could receive astronomical compensation payouts in the tens of millions of yuan, sparking both excitement and skepticism.
On October 16th, the Chengdu Housing Team, which originally published the demolition map in question, issued an official statement to quell the growing rumors. They clarified that the relocation projects shown in the map are sourced entirely from data that has been gradually made public over the past year or longer. The plans are not a sudden or recent development as the viral posts suggest.
Furthermore, city authorities confirmed that all compensation for demolition and relocation strictly follows standards outlined in government policy documents available to the public. They stated it would be impossible for any single household to receive payouts to the tune of tens of millions of yuan as the sensationalized rumors claimed. Typical compensation rates are more in the range of 1:1 or 1:1.5 based on property size.
As the demolition controversy spread like wildfire online, it had a surprising effect on financial markets. The Chengyu Index, which tracks A-shares related to Chengdu and Chongqing, skyrocketed on October 16th with over 50 constituent stocks hitting their daily upward limit, including Chengdu Road and Bridge, Chongqing Port, and others.
The sudden surge in Chengyu stocks may have been fueled in part by other recent developments. On September 27th, China’s State Council approved the Chengdu City National Land Space Plan (2021-2035), which outlines ambitious goals for the city to become the key central hub for Western China and a world-class city. Additionally, in April, Sichuan province announced a shortlist of 330 key construction projects representing 2.15 trillion yuan in estimated investment.
While the demolition compensation rumors have been thoroughly debunked by Chengdu authorities, many still believe the city has strong fundamentals for growth. With its strategic location, transportation links, and the government’s development plans for Western China, Chengdu’s property market and broader economy may still have considerable upside potential in the coming years, even if residents shouldn’t expect to become overnight millionaires from demolition payouts.
As always, investors and the public should be wary of unsubstantiated rumors spread online and on social media. While Chengdu’s future seems, get-rich-quick schemes promoted by internet influencers rarely pan out. The smartest approach is to stay grounded and look to official government plans, policy documents and economic data to gauge the city’s real estate and economic prospects.