China economic collapse like ‘2008 global crash on STEROIDS’ as warning issued that crisis will get ‘much worse’

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A top asset management firm has warned China’s economic crisis is going to “get much worse.”

Hayman Capital founder Kyle Bass has warned that President Xi’s overreliance on real estate has sent its economy tumbling toward 2008-era financial conditions.

It comes as Chinese markets have suffered a $7 trillion fallout since 2021.

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Over the last few months, Beijing authorities have publicised efforts to stem these outflows, though confidence has yet to pick up.

“They have three and a half times more banking leverage than we did going into the crisis. And they’ve only been at this banking thing for a couple of decades.”

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He said that the years of double-digit growth China enjoyed prior to the pandemic were made possible by an unregulated real estate market, adding that the market was leaning too heavily on debt to expand.

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