Hard for China to Fix Its Real Estate Crisis
At the core of China’s current economic trouble is real estate, which represents a quarter of the country’s economic output and at least three-fifths of household savings.
Beijing has often addressed economic troubles by boosting spending on infrastructure and real estate, but now heavy debt loads make that a hard playbook to follow.
The construction and sale of new homes has stalled. More than 50 real estate developers have run out of money and defaulted or stopped payment on bonds.
The companies have left behind hundreds of thousands of unfinished apartments that many predominantly middle-class families had already purchased, taking out mortgages to do so.
New York Times 22 August 2023
https://www.nytimes.com/2023/08/22/business/china-economy-property.html
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