Why is there a real estate crisis unfolding in China?
China’s real estate sector has a debt problem. Large property developers like the embattled company Evergrande have racked up massive amounts of debt, leading to construction stoppages and lots of angry homebuyers.
Amid the turmoil, buyers across China have banded together and threatened to stop paying mortgages on over three hundred unfinished housing projects. The Chinese government could unleash bailout funding worth up to $148 billion aimed at allowing developers to finish their buildings. “Marketplace Morning Report” host David Brancaccio joined Jennifer Pak, Marketplace’s China correspondent, to go over the latest developments in the crisis.
The following is an edited