China's ten-year government bond yields have hit a historic low, reflecting deepening concerns over the nation's economic health. Growth figures are falling short, and the overwhelming debt burden of the state and private households signals looming deflation. This economic strain has led investors to retreat from stock markets, seeking the safety of bonds. The real estate market collapse and weak demand for raw materials suggest China might continue to export deflation. The situation evokes comparisons to Japan's economic troubles in the late 1980s. The Hang Seng index has plummeted back to levels last seen in 2000, highlighting the severity of the downturn.