Chinese real estate crisis: loans and sector are shrinking - financial experts fear unreliable growth drivers

Die Immobilien-Krise in China erreicht ihr nächstes Stadium: zum ersten Mal fallen die ausstehenden Kredite, der Immobilien-Sektor schrumpft um -2,7%.

China: Real estate loans fall by 100 billion yuan

As the Chinese central bank, the People's Bank of China (PBoC), announced, loans in the real estate sector fell by 100 billion yuan (approx. 13 billion euros) to 5.319 trillion yuan (approx. 410 billion euros) in September compared to the previous year. This is the first time since public data became available that the amount of outstanding loans in China has declined. At the same time, outstanding mortgages fell by 490 billion yuan (about 38 billion euros) to 38.4 trillion yuan (about 3 trillion euros).
The impact of these developments is enormous. The real estate sector in China is a significant growth driver and a pillar of the economy. A decline in outstanding loans and mortgages indicates a general slowdown in this sector, which may affect the country's overall economic growth.

Real estate sector less reliable growth driver

The South China Morning Post noted that China's real estate sector, which once accounted for a significant portion of the country's gross domestic product, is becoming an increasingly unreliable driver of growth. This decline in the real estate sector could lead to a search for alternative growth patterns as investments in infrastructure are no longer sustainable. The development could also impact foreign investment in China and force the government to look for new ways to stabilize the economy.
The real estate crisis could also affect consumption in China, as the population's wealth decreases as the value of real estate decreases. This could impact the entire consumer sector and represent a further obstacle to economic growth.
According to a report by finanzmarktwelt.de,