China’s Nightmare Evergrande Scenario Is an Uncontrolled Crash

Real estate investment accounts for 8 percent of China's gross domestic product，The living area of a person is 40 square meters，China now has enough housing area for 4 billion people。
Most rural young people go to work in big cities，Now in rural China, most of them are the elderly。House prices are very expensive in some big cities in southern China，The most expensive areas in Shanghai and Shenzhen，One square meter is about 120000 to 150000rmb=15000 to 20000 euros。There are the cheapest houses in Northeast and Western China，Hegang City, Heilongjiang，The average house price is only 2036 RMB=One square meter = 206 euros。
Some people who buy Evergrande houses will worry，The total assets of China Evergrande are 2.38 trillion rmb，Total liabilities: 1.97 trillion rmb=260 billion euro。In 2019, the total liabilities of Chinese real estate developers reached 80 trillion rmb=10560 billion euro。By October 2020, China's social financing scale has reached 37 trillion euros。

canxue wrote: Real estate investment accounts for 8 percent of China's gross domestic product

gotta remember, its not just direct real estate investments in evergrande that will be affected. it will have a domino effect on every entity that has a stake in the companys products and services, and some more.