The Three Red Lines: Restricting Debt for Property Developers in China

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China's property market is in crisis as developers face strict debt limits. Evergrande, a major developer, amassed hundreds of billions of dollars in debt and started missing payments. Housing prices have fallen, leading to more defaults. Evergrande's founder is under investigation and the economy is at risk. China is trying to deflate the market, but the extent of the damage is uncertain. If they can't stabilize things, their economy will suffer.

China's economic growth for the past few decades has been extraordinary. And much of that growth was fueled by real estate – it was like this miraculous economic engine for the country. But recently, that engine seems to have stopped working. And that has raised all kinds of questions not just for China but also for the global economy.

Today on the show, we look at what's happening inside China's real estate market. And we try to answer the question: how did we get here?

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