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China’s robust growth, one of the fastest sustained expansions for a major economy in history, was propelled for decades by a housing boom fueled by a rising population and urbanization.
But the all-important property market, which has accounted for as much as 30% of the economy, fell into crisis more than two years ago after a government-led clampdown on developers’ borrowing.
Investment in real estate fell last year for the first time in a decade, and with no bailout from Beijing in sight, the property downturn is likely to drag on, posing a major threat to China’s growth prospects over the next three to five years.
“For China, the only way out of this [property] crisis is a slow