China’s Middle-Class Wealth Trapped in Real Estate, Study Says

The wealth of the Chinese middle and lower-middle class is locked up in the country’s increasingly risky real estate market, according a study published Nov. 24 by Renmin University of China.

In this picture taken on May 28, 2018, a banner that reads "98 percent of people have signed contracts in a pleasing way, 2 percent of peoples houses have been forced-collected according to law, its the trend of the time and coinciding with the popular will" is seen on a building in Chikan village in Kaiping. NICOLAS ASFOURI/AFP/Getty Images

The wealth of China’s middle and lower-middle class is locked up in the country’s increasingly risky real estate market, according a study published Nov. 24 by Renmin University of China.

At a press conference held at the Analysis and Forecast of Macroeconomic Performance of China 2018–2019 conference, held in Beijing, the report by National Academy of Development and Strategy of Renmin University indicated that the debt rate of destocking in real estate for Chinese consumers rose sharply and that the consumption base has been severely weakened. At present, the wealth of residents is basically tied to property.