No economy has been able to ignore a property bubble and even less so offset it and continue to grow replacing the bust of the real estate sector with other parts of the economy. Heavily regulated economies from Iceland to Spain have failed to contain the negative impact of a real estate sector collapse. It will not be different in China.
China’s real estate problems are three: The massive size of the sector, its excessive leverage, and the amount of developer debt in the hands of average households and retail investors. READ MORE
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