China’s property (real estate) market has lost over $18 trillion in value since 2021. This is even worse than the 2008 financial crisis in the U.S. It shows that China’s economy is in serious trouble.
What Went Wrong?
The problem started when big property companies like Evergrande borrowed too much money and couldn’t pay it back. People got scared and stopped buying homes. Then, sales dropped, the economy slowed down, and government rules made things even harder. As a result, the whole real estate market started falling apart.
Why Is This a Big Deal for the World?
Real estate is very important for China — it makes up 25–30% of its economy.
Most Chinese people keep their savings in property. Now, they feel poorer and are spending less money.
This crash may affect the whole world. Global markets, prices of goods (like oil or metals), and even crypto could be impacted as China’s demand decreases.
What Might Happen Next?
The Chinese government might try to fix things by spending more money or changing rules. But experts say this won’t solve the big, deep problems quickly. People have lost trust, and it will take time to get it back.
Many investors are now looking at other places to put their money — like cryptocurrency, tech stocks, or investments outside China.
In Short:
China’s property bubble has popped. A fast recovery is unlikely. The world is now watching carefully to see what happens next.