Crisis in China: The Ponzi scheme underpinning the country’s real estate market has now come to light

The 120-kilometer stretch of railway between the cities of Luoyang and Zhengzhou has become a stark display of economic decline and broken dreams. Through the window of the train, half-built residential high-rises are changing each other. Their sad sight does not leave us during the hour-long journey. Many of the buildings appear to be almost finished, and some are complete and have become homes to countless families. Unfortunately, a much larger part consists of hollow skeletons, the construction of which stopped quite a long time ago. Construction companies have run out of money, so they can no longer pay workers or buy materials. The projects have stalled, so a considerable number of citizens will not be able to enjoy new housing.

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