1. Home
  2. Studies
  3. China's real estate sector: How big is the crisis?
Sonja Beer IW-Report No. 19 5. May 2022 China's real estate sector: How big is the crisis?

This report analyses the rising risks in the Chinese financial market as well as the current tensions in the Chinese real estate market.

Download PDF
How big is the crisis?
Sonja Beer IW-Report No. 19 5. May 2022

China's real estate sector: How big is the crisis?

German Economic Institute (IW) German Economic Institute (IW)

This report analyses the rising risks in the Chinese financial market as well as the current tensions in the Chinese real estate market.

Since the introduction of the so-called three red lines and the tightening of the regulation on corporate borrowing rules, some highly indebted real estate companies have run into difficulties. There is a concern that these companies could go bankrupt. Such a development would have negative effects on China's financial market and potentially global financial markets. Due to various factors, this scenario does not seem very likely. However, a broader, far-reaching real estate crisis harbors the risk of significantly dampening China’s economic growth and thus also having a negative impact on the global economy.

Download PDF
How big is the crisis?
Sonja Beer IW-Report No. 19 5. May 2022

China's real estate sector: How big is the crisis?

German Economic Institute (IW) German Economic Institute (IW)

More on the topic

Read the article
Luftaufnahme der Innenstadt von Jakarta, der Hauptstadt Indonesiens.
Samina Sultan / Gero Kunath / Henrik Förster/ Jürgen Matthes IW-Report No. 9 15. February 2024

Indonesia: A new Indo-Pacific partner?

Indonesia will elect a new president on 14 February. After ten successful years in office, Joko Widodo is not allowed to run for office again. He has ushered in an era of reform in the country.

IW

Read the article
Galina Kolev-Schaefer / Adriana Neligan IW-Report No. 8 8. February 2024

Due Diligence - Effect of Supply Chain regulation: Data-based results on the effects of the German Supply Chain Act

After the agreement of the European Parliament and the Council of the EU in December 2023, a few formal steps remain to introduce the Corporate Sustainability Due Diligence Directive (CSDDD).

IW

More about this topic

Content element with id 8880 Content element with id 9713