China’s economy : Here is what you need to know

The Chinese economy is experiencing a near-complete collapse. Nearly half a million customers have lost their deposits as the banks lent indiscriminately to housing developers who are now facing cascading defaults. Here’s the story the Chinese Govt. doesn’t want you to know 👇
The crisis spread to banks, as they had loaned out depositors’ money to developers who were now defaulting on payments. As frozen deposits mounted and protests erupted all over China, investigations revealed critical systemic issues
For starters, during the covid crisis, the government had lowered the 10% limit on assets that banks had to keep in cash and investigations revealed corrupt practices in the banks, some of which were taken over by criminal gangs who transferred the deposits outside the country
Whether these strategies can revive investor confidence or is simply delaying the inevitable remains to be seen, but China is unlikely to meet its targeted 5.5% GDP growth rate, and right now, youth unemployment is at nearly 20%!
As the semiconductor shortages showed us, events across the world can have serious consequences back home. Chinese companies have substantial investments in US equities and might sell them during a crisis. This can tilt the investor sentiment to fear and trigger selloff
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