China’s $100 Trillion Housing Bubble Reaches Its Limit
The Chinese government will ensure that its housing market adjustment does not come from a collapse in home prices, but from a reduction in housing development and construction activity. Yet too rapid an adjustment is dangerous, because housing-driven sectors account for over a quarter of China’s economy and jobs. The Chinese government will tread a fine line to avoid a collapse in home prices at one extreme, or a collapse in employment at the other extreme.
