China’s real estate crisis will overwhelm the world!
Europe’s largest bank HSBC came under attack

New Delhi, October 31 (INT): What was expected happened. China’s real estate crisis is gradually beginning to engulf the entire world. Real estate in China’s economy has about 30 percent stake. From this, it can be estimated how important this sector is for China’s economy. If it sinks, the banking sector will also be destroyed.

Many banks of the world have invested heavily in China’s real estate sector. Now its side effects have also started appearing. After Standard Chartered, now Europe’s largest bank HSBC has also got a blow of 500 million dollars from China.

The bank has expressed apprehension that the situation may become even more dire in the coming days. HSBC released its results on Monday which did not meet expectations. The bank has made a provision of $500 million to cover losses on real estate loans in China.  Due to this, the bank Profit has been affected.

HSBC Bank says that the situation in China may worsen in the coming days. Last week Another bank  Standard Chartered also said that its profit has been affected due to China.

Sales of houses are bad in China. It has fallen and developers are defaulting one after the other. The government has taken several steps to bring it back on track but till now they have been of no use.

Decline in manufacturing again

Meanwhile, due to weak demand, the manufacturing sector in China has once again declined. The Purchasing Managers’ Index fell to 49.5 in October from 50.2 in September. Non-Manufacturing PMI also remained at 50.6 which is the lowest after December 2022. PMI is considered a monthly indicator
of economic activity. Above 50 shows expansion and below 50 shows contraction. China is the second-largest economy in the world but it has been struggling on many fronts for some time. People are busy saving instead of spending, unemployment is at its peak and exports have also declined. Besides, tensions with America also remain constant.