Currently the real estate market seems to be on very shaky grounds as developers have debts that they’re not being able to pay off. So bonds whose coupons are due are not being paid.

Chinese citizens generally pay up front a certain amount (or fully) long before they move into their apartments. This money is generally used to complete construction. But developers seem to have used this to buy other properties for construction, over leveraging themselves. And now that construction is wayyy behind schedule and the people still can’t move in, they’re refusing to pay their mortgages causing banks to pull back lending and become more strict with debt restructuring for developers.

Tldr: Way too many homes built for people who don’t want them. Lots of loans might be unpaid. Might affect other sectors.