Part 3/9:
While industrial profits falter, China's banking and real estate sectors are on the verge of crisis. Recently, major developers have communicated internal pressures to secure liquidity to stave off default. The interplay between weak industrial performance and banking stability becomes evident; banks are relying heavily on industrial success to achieve profitability and manage growing losses in the property market.
With one of China's significant developers sounding alarms over default risks, confidence in the real estate sector is precarious. Once robust, the sector is now a drag on the economy, exacerbating issues in manufacturing and consumer spending.