China’s Property Crash Worsens as Consumer Confidence Plummets

- Evergrande faces delisting as home prices continue downward spiral. - Consumer spending stalls; lending contraction signals economic uncertainty. On August 16, 2025, Cryptopolitan reported that China’s property crisis is accelerating. Home prices are in freefall, and Evergrande faces delisting, highlighting deep structural weaknesses in the nation’s economy. Key indicators reveal mounting pressure on the property sector, faltering consumer demand, and troubling lending data. These signs cast doubt on the effectiveness of government stabilization measures. China’s property market woes show no signs of abating. Home prices have declined steadily since August 2021, and recent months have seen sharper drops. Total property investments for the year have plummeted to their lowest levels since the 2020 COVID-19 pandemic. Adding to the turmoil, China Evergrande, once a dominant player, faces imminent delisting. This move underscores the ongoing instability. The government has tried to intervene by easing borrowing rules and reducing interest rates, but these efforts have so far failed to quell the crisis. Consumer confidence remains frail following the 2022 lockdowns. Consumers are prioritizing debt repayment over discretionary spending. Consequently, retail sales rose by only 3.7% year-over-year in July and have now declined for two consecutive months. Short-lived successes, like the “cash-for-clunkers” scheme, failed to sustain momentum, highlighting persistent weak demand. Compounding the issue, banks have reported their first decline in lending in two decades, as reduced borrowing and a sharper focus on debt repayment weigh heavily on the financial system. The lending landscape reflects mounting challenges. Local governments are grappling with debt crises and issuing bonds primarily to service their obligations, not to stimulate economic activity. According to JPMorgan economists, over half of new loans now cover interest payments rather than drive future growth. Adjusted lending, which excludes interest obligations, remains significantly below the averages from 2016 to 2023. This signals a lack of productive credit expansion. Nominal GDP growth, a crucial metric for tax revenues and economic vitality, has slumped to an unprecedented low. The economy grew by only 3.9% last quarter. This is the smallest increase since records began in 1993, excluding the pandemic period. By comparison, Japan’s economy posted 4.2% nominal growth during the same period, underscoring regional disparities. July exports rose unexpectedly by 7.2%, but analysts doubt this growth is sustainable. They point to growing friction with European trading partners. With a property market in disarray, cautious consumers, and strained credit markets, China’s road to recovery remains uncertain.