[Maken]

Wasn't the housing crisis mostly the Chinese middle class trying to secure their savings from inflation by investing in real state?

[Sabinus]

Not from my understanding.

Land sales/leases are one of the few ways the local governments can make money, so they overdid approvals and subsidies.

The Communist party also imposed strict capital controls so the middle class couldn't invest worldwide. Combine that with a cultural desire for housing, and you have a huge over investment in Chinese housing.