A Ponzi scheme by any other name: the bursting of China’s property bubble

House prices in China have fallen in each of the 12 months since Evergrande’s warning. Nearly a third of all property loans are now classed as bad debts – 29.1% – up from 24.3% at the end of last year. Ratings agency S&P said at least 800bn yuan would be needed to rescue property market. About 2m off-plan homes remain unfinished across China, according to a rough estimate. Government’s pledge of 200bn yuan (£26bn) to kickstart investment was judged to be well short of what was needed.

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