Abstract
China’s real estate sector is closely tied to its financial system, so any attempt to assess financial risks involves some assessment of the state of the housing market. Both traditional and shadow banks have been active in lending to borrowers who are directly or indirectly connected to the real estate markets. These borrowers include homeowners and construction companies, but also local governments, who rely on land sales for repaying their loans, and many suppliers of raw materials and home appliances. If China does have a real estate bubble and it bursts, the consequences for the financial system, and the general economy, will be severe.
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Armstrong-Taylor, P. (2016). Real Estate Market. In: Debt and Distortion. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-53401-9_12
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DOI: https://doi.org/10.1057/978-1-137-53401-9_12
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