China's Real Estate Market Faces Ongoing Crisis

Summary:

China's real estate sector, once a pillar of its economic growth, is now in turmoil, with leading developers like Evergrande and Country Garden facing financial collapse. Contributing nearly a third of China's GDP, the sector's decline is causing widespread economic instability. The crisis stems from excessive borrowing, overbuilding, and weakening consumer confidence. Government interventions, such as lowering mortgage rates and down payment requirements, have yet to restore stability. As China's aging population further reduces housing demand, the global implications of this crisis continue to unfold.