Part 9/10:
Looking at the performance in Hong Kong—a microcosm of larger Chinese economic trends—reveals that the commercial sector is undergoing one of its most severe slumps in history. Property prices are at a historic low, causing bank liquidity issues and escalating defaults among property owners and developers. This trend highlights the connection between the collapsing property market and broader banking sector vulnerabilities, revealing that banks may need to take on more losses as the economic situation stabilizes.