Business Daily Why China’s property bubble burst
20 snips
Sep 21, 2025 Explore the dramatic rise and fall of China's real estate market, which once fueled 30% of its GDP. Learn about the regulatory shifts in 2020 that triggered a chain reaction, leading to massive company collapses like Evergrande. Discover the plight of buyers trapped in unfinished apartments amid soaring inventory. Delve into Beijing's attempts to stabilize the market and the potential global repercussions of this crisis. Experts weigh in on the long-term impacts and what the future may hold for China's economy.
AI Snips
Chapters
Transcript
Episode notes
Real Estate Fueled China's Growth
- China's property sector once made up about 30% of GDP and was the preferred place for household savings.
- That concentration created systemic risk when prices stopped rising and regulators tightened funding in 2020.
Policy Shift Ended Easy Funding
- Xi Jinping's policy that 'homes are for living in, not for speculation' triggered regulators to restrict developer funding in 2020.
- That shift exposed leveraged developers and set off defaults beginning with Evergrande in 2021.
Buyers Left In Unfinished Buildings
- Residents who paid for unfinished apartments are living in gutted, stalled buildings and have stopped paying mortgages.
- Some families, including children, sleep in these half-built units after exhausting savings and options.