Chinese economy on the verge of crash: Numerous announcements, no actions - financial crisis looms

Chinese economy on the verge of crash: Numerous announcements, no actions - financial crisis looms

According to a report from www.nzz.ch, China is threatened with a serious economic and financial crisis. The real estate sector is the main reason for the current economic downturn. Chinese real estate developers such as Evergrande and Country Garden can no longer meet their payment obligations, which could lead to further companies in difficulties. The real estate crisis is even spreading to the financial sector, as the case of asset manager Zhongrong International shows. Interest rate cuts by the People's Bank of China have had little effect so far, leaving the government in a bind as it wants to avoid debt-financed bubbles but needs to support the sector to protect the entire economy.

These developments have potentially far-reaching implications for the Chinese and global financial industries. If the crisis continues to fail to be contained, it could lead to a severe deflationary shock to the Chinese economy. Another failure of major real estate companies or financial institutions could lead to a conflagration that rocks the financial sector.

This represents a period of uncertainty for investors and investors. The Chinese government's lack of concrete measures to address the crisis is causing distrust and could lead to increased volatility in financial markets. The impact could also affect foreign companies invested in China, as the Chinese government adopts increasingly restrictive laws restricting foreign investors.

Overall, the situation in China is worrying and requires clear, decisive policies to restore confidence in the economy and prevent the crisis from escalating further. The global financial industry will therefore need to closely monitor developments in China and be prepared for possible impacts.