China has engaged in decade-long malinvestment in industry and housing, with housing serving as the primary capex vehicle for long-duration builds, and is now experiencing a housing market unwind where developers have depleted working capital, cannot fund properties already pre-sold by consumers, and consumers no longer want delivery—mirroring the 2007-2009 US mortgage crisis but in reverse (buyers prepay for unbuilt assets).
factualpending
Speaker
Mike TaylorEvidence Quote
“massive multi-deade long malinvestment...housing has been the vehicle...every single builder in China has worked away or stolen all of their working capital so that they don't have the funding to build a property that people already bought”
Source
Biggest. Bubble. In. Capital. Market. History | Mike Taylor 1-on-1 With Keith McCullough— HedgeyeCreated: 8/10/2026, 11:06:55 PM
My Notes
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