China's property market is experiencing forthgoing turmoil. Home prices plummeted by 4.5% YoY last month, marking the steepest drop in nearly a decade. This decline is hitting borrowers hard and destabilizing bank balances.
With new construction starts down by 23.7% and property investment decreasing by 10.1% in the year's first half, the Chinese central bank faces the monumental task of re-inflating the market to sustain the fiat system. Failure to do so could risk a collapse of the financial structure.
In terms of liquidity, I think we can expect very big things from the Chinese central bank soon, which should also coincide with the liquidity cycle of the other major central banks! Protect yourselves with hard assets!