The fear driven panic selling is based on when the last bull is locked and ready and no more buyers. An exponential rise does not prejudice the type of product valuation. Dot com, Mining fads, bitcoins etc. I currently see another expo rise in so call fintech of which I am unfamiliar but I can see everyone jumping in.
WRT China, it would appear sensational to expect Chinese gdp growth at 2% in an uncontrolled fashion. Eventually when it runs out of growth through the industrialised nature of a country and you only have to look at Japan & Korea, growth will stagnate. Prediction is a mugs game and you only have to look at all the goldbugs out there in making not only claims where gold price will head to but entire monetary collapse!
I heard a panellist a few days ago also stating your sentiment regarding Syd/Mel property valuation commenting that a 25% haircut is equivalent to 2015/16 valuation but what will happen to all those 'wealth effect' or bank profits and the eco system that requires growth such as wages? It is the underlying related and inter-depend sectors that will all feel the effects since we do not have money printing capability.
In fact we are back to bad news is good news for stock market. GDP contraction announced yesterday and XJO rallies. Rate cut coming to stimulate even more cheap money yield chasing?