Is it a natural real estate crisis, is the Communist Party allowing the completely overstretched real estate market to shrink and prices to come down? Is it possibly to make housing cheaper for the population, some of whom are dissatisfied?

These questions are difficult to answer if you look at the lack of transparency in Chinese data and the communication policy of the political leadership there. The fact is that the largest single market in the global economy, the Chinese real estate market, is experiencing a significant drop in prices after having been used as an artificial economic buffer for decades, with the state creating artificial demand and building up overcapacity in the Keynesian tradition. We are all familiar with the images of ghost towns for millions of non-existent inhabitants. In its crisis, this market is now contributing to China exporting a good part of its deflation to the world.