China perpetuating property bubbleBy Antonio GraceffoFor decades, Beijing has used investments to generate growth, with much of its spending focused on constructing new apartment buildings. Property prices increased steadily from 2000 through March 2021. BOC, ICBC and CCB reported increases in property sector nonperforming loans of 20 to 30 percent. Analysts estimate that the quantity of property loans in danger of default is equal to 12 percent of GDP. The other option is for property prices to drop significantly, which would trigger massive credit defaults, threatening the banking sector.

Source: Taipei Times October 08, 2023 16:37 UTC