The Evergrande Effect: Unraveling China’s Property Crisis

China’s property downturn has been a prolonged and complex economic crisis, originating from the default of China Evergrande Group in July 2021. This event triggered a collapse in housing sales, prices, and construction activity, which has persisted for three years. The crisis has significantly reduced aggregate demand and weakened the financial system, creating widespread economic ripple effects. A key question remains: how much longer will this property crisis last, and what are the underlying factors contributing to its continuation?