Policymakers, wary of inciting reckless borrowing in real estate, are instead investing heavily in factories and trying to help indebted local governments.
Banks hold enormous amounts of real estate debt, and regulators are nervous. But a fast-moving crisis is unlikely because the government has extensive control of the system.
The People’s Bank of China will allow commercial banks to hold less money in reserve, but businesses and households have been cautious about borrowing.