That China has a massive real estate bubble is not new. They really stepped on the gas pouring money into real estate when the 2008 financial crash in the West hit exports as Westerners tightened their belts. Just look up “ghost cities”. As we saw in 2008 and Japan saw in 1989, real estate bubbles are extremely painful when they burst and are a huge drag on an economy for years and years.
Trump hitting their exports to their #1 market with higher and higher tariffs comes at a terrible time for them. What do they offset the inevitable collapse of the debt bubble there with if not a huge inflow of cash from exports?
The well connected and wealthy in China have been getting as much of their money out as they could for years now. They see what’s coming.
They really stepped on the gas pouring money into real estate when the 2008 financial crash in the West hit exports as Westerners tightened their belts.
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The major lender for those project was hong kong.
Hong Kong is currently leveraged more than Ireland before their crash.
“They really stepped on the gas pouring money into real estate when the 2008 financial crash in the West hit”
It was the biggest economic stimulus in the history of the world. It was also very poorly invested. A lot of it (Ghost Cities) will never pay back their loans, and will have to be written off.
Possibly the biggest write-off in the history of the world, if you add their massive financial fraud to their mountains of debt.