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Chinaâs property market has seen a massive collapse, losing over $BTC 18 trillion in value since 2021. Thatâs even bigger than the losses the U.S. suffered during the 2008 financial crisis. This shows that China, the worldâs second-largest economy, is facing very serious problems.
What Went Wrong?
The trouble started when big property companies like Evergrande borrowed too much money and couldnât pay it back. As news spread, people stopped trusting the market. Fewer people bought homes, and sales dropped sharply. At the same time, Chinaâs economy slowed down, and strict government rules made things worse. All this caused the real estate market to crash.
Why Does This Matter for the Rest of the World?
Real estate makes up about 25â30% of Chinaâs economy.
Many Chinese families have most of their wealth tied up in property. With prices falling, they feel poorer and spend less.
This slowdown could spread to the rest of the world, hurting demand for things like metals, oil, and even cryptocurrencies.
Whatâs Next?
Chinaâs government might try to help by adding new economic support. But experts say these short-term solutions wonât solve the deeper problems. Rebuilding trust in the market will take time.
Meanwhile, many investors are already looking for other places to put their money, such as crypto, tech stocks, or foreign investments they believe could be safer or more profitable.$BNB
Bottom Line:
Chinaâs property bubble has burst. A quick recovery is unlikely. It will probably be a long, slow process â and global markets are paying very close attention.
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