The debt problems faced by the real estate sector in China, can turn into a perennial stagnation, said the economist and researcher at the Chinese center of Oxford University George Magnus, whose words lead CNBC.
According to him, stagnation will affect not only China’s internal economy, but also the world as a whole.
Magnus believes that the real estate market really approached the turning point and in the near future the second largest economy of the world will face big debt problems.
It is noted that the situation in the Chinese real estate market is complicated due to the problem developer. China fears the influence of the potential default of the developer on the world economy, markets and the financial system of China.