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“China real estate market crash 2023” : “China’s Real Estate Market Plunges by 81% in 2021-2022, Followed by Another 64% Drop in 2023”By Chekwas John | December 8, 20230 CommentIn a shocking development, China’s real estate market has experienced a significant downturn, with an 81% drawdown from 2021 to 2022, followed by another 64% drawdown in 2023. This news has sent shockwaves through the industry and raised concerns about the stability of one of the world’s largest economies.The alarming data was shared by financial market data provider Barchart on their official Twitter account. The tweet, accompanied by a graph illustrating the steep decline, quickly gained attention and sparked discussions among economists, investors, and industry experts. The graph clearly highlights the sharp decline in the real estate market, which has far-reaching implications for the Chinese economy as a whole.China’s real estate market has long been a pillar of the country’s economic growth, contributing to nearly 30% of its GDP. The sector’s decline not only affects property developers but also has a ripple effect on various other industries, including construction, finance, and manufacturing. The sudden downturn has raised concerns about potential job losses and economic instability.Experts attribute this downturn to a combination of factors, including government policies aimed at curbing speculative investment and rising debt levels among property developers. The Chinese government has been implementing measures to cool the property market for several years, as soaring home prices and excessive borrowing have become a cause for concern. These policies, coupled with the economic impact of the COVID-19 pandemic, have resulted in a sharp decline in real estate values.The consequences of this downturn are likely to be felt beyond China’s borders. Given the country’s significant role in the global economy, any turbulence in its real estate market could have far-reaching implications. Investors and businesses with ties to the Chinese market are closely monitoring the situation, adjusting their strategies and assessing potential risks.Chinese authorities are expected to closely monitor the situation and implement measures to stabilize the market. However, finding a balance between curbing speculation and maintaining economic growth will be a delicate task. A sudden crash in the real estate market could have severe consequences for the overall economy, potentially leading to financial instability.As the situation unfolds, it is crucial for policymakers to take proactive steps to address the challenges facing the real estate sector. This includes promoting sustainable development, ensuring affordable housing for the population, and implementing effective regulations to avoid future bubbles.The future of China’s real estate market remains uncertain, and the effects of this downturn will continue to reverberate throughout the country. As the government and industry stakeholders work towards a solution, the international community will be watching closely, hoping for stability and a gradual recovery in this crucial sector.
How EU countries could cut off the remaining Russian gas importsA new proposal would make it easier for EU member states to phase out Russian gas completely.A new EU proposal would give member states the power to stop companies in Russia and Belarus from accessing European pipelines and LNG terminals, partially or completely, the Financial Times reported citing a draft legal text proposed by Brussels.If adopted, EU energy companies could have a legal basis to get out of contracts with Russian gas providers without having to pay compensation, writes the report citing a senior official of the EU. The proposal comes as the EU is trying to phase out Russian gas completely from the bloc by 2027, without an outright ban on Russian gas imports. EU gas imports from Russia have been decreasing ever since the invasion of Ukraine in February 2022. However, one-tenth of the total gas imports of the EU still come from Russia. In fact, data shows that the bloc's purchases ofliquefied natural gas (LNG) from Russia have soared between January and July in 2023 compared to the pre-war levels. Member states have different positions, while the Netherlands has taken a firm approach against Russian gas shipments, Belgium, Spain and France are still allowing the import and export of Russian gas, saying that it is difficult for their companies to leave the existing contracts.The negotiators from member nations and the European Parliament are expected to endorse the preliminary text on Friday, the FT report added.