The Chinese property bubble is now bigger than the U.S. housing bubble that led to the Great Recession
The "world's biggest asset bubble" just keeps growing amid the coronavirus pandemic, The Wall Street Journal reports.
A new report in the Journal delves into how a property boom in China has "resumed its relentless upward climb" following COVID-19 lockdowns earlier this year. In fact, according to the report, investors sank more into Chinese real estate last month than ever before. Housing sales in China initially took a dive at the start of 2020.
"The resulting asset bubble, many economists say, now eclipses the one in U.S. housing in the 2000s," the Journal writes.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
After all, residential real estate in the U.S. was reportedly seeing about $900 billion a year during the property boom's peak, but in China, investors flooded the housing market with roughly $1.4 trillion over the past 12 months ending in June.
"Because of the pandemic they're actually consuming less, and saving more," Texas A&M University economics professor Gan Li told the Journal. "So they'll actually have more money available to invest. That will create an even larger housing problem." Read more at The Wall Street Journal.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Brendan worked as a culture writer at The Week from 2018 to 2023, covering the entertainment industry, including film reviews, television recaps, awards season, the box office, major movie franchises and Hollywood gossip. He has written about film and television for outlets including Bloody Disgusting, Showbiz Cheat Sheet, Heavy and The Celebrity Cafe.
-
Magazine solutions - December 27, 2024 / January 3, 2025
Puzzles and Quizzes Issue - December 27, 2024 / January 3, 2025
By The Week US Published
-
Magazine printables - December 27, 2024 / January 3, 2025
Puzzles and Quizzes Issue - December 27, 2024 / January 3, 2025
By The Week US Published
-
Why ghost guns are so easy to make — and so dangerous
The Explainer Untraceable, DIY firearms are a growing public health and safety hazard
By David Faris Published
-
Why is China targeting Nvidia? (And why is the AI giant so important?)
Today's Big Question A new front in the 'chip war' with the US
By Joel Mathis, The Week US Published
-
Judges block $25B Kroger-Albertsons merger
Speed Read The proposed merger between the supermarket giants was stalled when judges overseeing two separate cases blocked the deal
By Peter Weber, The Week US Published
-
Rupert Murdoch loses 'Succession' court battle
Speed Read Murdoch wanted to give full control of his empire to son Lachlan, ensuring Fox News' right-wing editorial slant
By Peter Weber, The Week US Published
-
Bitcoin surges above $100k in post-election rally
Speed Read Investors are betting that the incoming Trump administration will embrace crypto
By Peter Weber, The Week US Published
-
Enron mystery: 'sick joke' or serious revival?
Speed Read 23 years after its bankruptcy filing, the Texas energy firm has announced its resurrection
By Peter Weber, The Week US Published
-
Russia's currency crisis as sanctions bite
The Explainer Rouble plunges to lowest rate against dollar since invasion of Ukraine as economic toll finally begins to be felt
By Elliott Goat, The Week UK Published
-
Is this the end of the free trade era?
Today's Big Question Donald Trump's threat to impose crippling tariffs 'part of a broader turn towards protectionism in the West'
By Elliott Goat, The Week UK Published
-
US charges Indian tycoon with bribery, fraud
Speed Read Indian billionaire Gautam Adani has been indicted by US prosecutors for his role in a $265 million scheme to secure solar energy deals
By Peter Weber, The Week US Published