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China's real estate sector is currently experiencing a significant crisis, marked by falling prices, developer defaults, and a decline in consumer confidence. This crisis began in 2021 with Beijing's restrictions on developer debt and has since spread, impacting both the real estate market and the broader Chinese economy.

Key Aspects of the Crisis:

Developer Debt and Defaults:

The crisis stems from years of aggressive borrowing by developers, fueled by government encouragement of property investment. When Beijing implemented restrictions on developer debt, many companies, including major players like Evergrande and Country Garden, struggled to meet their obligations, leading to defaults and a broader crisis of confidence.

Falling Home Prices:

Home prices have been declining, with some estimates indicating a drop of around 30% from their peak in 2021, according to Bloomberg. This decline is impacting household wealth, with estimates suggesting a significant drop in wealth tied to real estate, according to The Economist.

IMPACT ON CRYPTO.....

The impact on cryptocurrency may be dual edged. but as Crypto is already banned in China it may not be significant effects. However the investors who are thinking on new options and getting out their money from the realstate will definitely consider crypto.

Best of luck.