INDIA

China Is Suffering!

NEW DELHI: Indian Government is going to cut subsidies on food and fertiliser to 3.7 trillion rupees ($44.6 billion) in the financial year from April, down 26% from this year, two government officials said, to control financial shortage that ballooned during the Covid-19 pandemic.

The housing industry constitutes 25% of Chinese GDP.

Evergrande Group, China's second-largest housing firm, has failed to meet its offshore debt obligations, triggering a housing crisis.

The failure led to developers abandoning half-finished buildings, founders selling their stakes, and homebuyers defaulting on mortgage payments.

Housing loan defaults pose a significant risk of causing a banking crisis, as banks have lent $7.5 trillion, accounting for one-quarter of all bank loans, to the housing sector.

The housing market collapse is worsening ahead of the Chinese Communist Party's 20th congress, where President Xi Jinping is expected to secure a third term as party leader.

Property represents over two-thirds of urban household wealth, and the housing industry contributes to one-fifth of GDP.

The housing market collapse is having a negative impact on the overall economy and has resulted in minor outbreaks of social unrest.

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