"An article in the US Foreign Affairs magazine warned last month that “sudden, steep price reductions” were “upending real estate markets across China.” It cited industry data showing that new home prices in Beijing dropped 35 percent in November alone, and that developers had built up 22 months’ worth of unsold inventory in Beijing and 21 months’ worth in Shanghai."
"The current real estate bubble has its roots in the 2008-09 worldwide financial crisis. The Chinese Stalinist regime released trillions of dollars of cheap credit in a desperate attempt to stem social unrest after 23 million migrant workers, especially in export industries, lost their jobs. The main result, however, was a borrowing spree by local governments, developers and industrial companies to speculate in the property market."
