China’s economy at a critical juncture: Q3 growth at 4.9%, Real Estate Market down 81% (2021-2022) and 64% (2023), Shanghai Composite tests 20-year ‘Fate Line.’

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China’s economy is teetering at a “critical stage,” expanding a modest 4.9% in Q3, below the five percent target. The aftermath of draconian Covid measures persists despite their removal in 2022.

Surprisingly, an economic model reliant on debt-fueled construction faces challenges. Ghost cities, idle airports, and vacant skyscrapers showcase the limitations of this approach. China’s Real Estate Market endured significant setbacks, with an 81% drawdown in 2021-2022 and an additional 64% in 2023.

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Adding to the concerns, the Shanghai Composite Stock Index is testing its 20-year ‘Fate Line,’ reflecting the fragility of China’s economic trajectory. As officials grapple with sustaining recovery, China faces a critical juncture with implications for the global economic landscape.


China’s Xi says economic recovery ‘still at critical stage’

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