China’s property market is on the verge of collapsing – bubbles always burst.


The property market in China is on the verge of collapsing – bubbles always pop.

The property market in China is on the verge of collapsing – bubbles always pop.

The Chinese company Evergrande Group is facing an uncertain future.

There are fears that if the company does not repay its massive (dollar)305 billion (£221 billion) debt, China’s massive property market will collapse.

While the Chinese Communist Party (CCP) is unlikely to bail out the company, an expert claims that if China’s property market collapses, the country’s economy will face “major problems.”

“The individual companies don’t matter very much,” said Professor Steve Tsang, director of the China Institute at the School of Oriental and African Studies, to This website.

“They are unlikely to be bailed out.

“The property market is important, and if it collapses, that’s a big deal.”

“The CCP is betting against it.”

With a market value of (dollar)55 trillion (£40 trillion) – four times China’s GDP – the property market is critical to the country’s economy.

When construction and property-related goods and services are factored in, annual housing activity accounts for 29 percent of the country’s GDP.

By enacting borrowing rules, Xi Jinping attempted to control the real estate market.

While Xi may want to fine-tune such a large part of the Chinese economy, professor Tsang claims that the market frequently “overcorrects itself.”

He explained, “Lending became more stringent, and they got themselves into trouble.”

“A minor correction would be appreciated by the CCP.”

“The real issue is that you can’t fine-tune it; the market will always overcorrect,” says the author.

Professor Tsang concluded, “If they can’t finesse the property market, it’ll continue unabated, and bubbles will eventually burst.”

“This will have disastrous consequences for China’s economy, which may become uncontrollable.”

Evergrande is a global conglomerate as well as a major real estate developer in China.

Due to its debt problems, Evergrande is said to have missed five bond interest payments to investors.

According to the Deutsche Marktscreening Agentur (DMSA), those debts total (dollar)148 million (£110 million).

The DMSA predicted that the company would file for bankruptcy in the near future because it failed to meet these deadlines.

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In addition, a number of payments are due in 2022.

On December 28, 2021, Evergande will have a (dollar)255.2 million (£189 million) debt.

“News from the Brinkwire.”


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