China's Housing Market Crisis

China's housing market has been hit with a long-running crisis, resulting in the downfall of major housing companies like Evergrande and now Country Garden. The high levels of leverage in the sector have contributed to this crisis. Country Garden, previously considered a strong developer, missed a coupon payment, causing panic in the housing market and across China's markets. With a significant portion of the Chinese population investing in housing due to limited investment options, a housing crisis can quickly lead to a loss of faith in the economy. This crisis poses a threat not only to homebuyers but also to the government and the wider Chinese economy.