Comment by smallmancontrov

Yes, but causality is backwards: the Chinese housing market stalled because China took the debt punch-bowl away from housing and gave it to the industrial sector.

It's also worth mentioning that loan subsidies play a bigger role in Chinese capital markets: Chinese industry is largely capitalized with state debt rather than private debt/equity or public markets. Zooming out, as a response to Trump's 1st term tariffs China went on a big autarky push by redirecting its citizens' and companies' deposits into a loan bazooka for the industrial sector. We are now seeing the fruits of that. The big questions have to do with (true) profitability and (true) balance sheets: can the new industries service their debts well enough for the government to hold face?