“Construction sector is the problem in China”

We asked, “What was the reason of the regression by 18% in China last year?” He made two points: “There was some disorder in construction sector in China. For example, apartment prices, which were around $1000/m2, increased to $10,000 even $20,000. This wasn’t a realistic price and the government intervened. Some new regulations were made in bank loans. Now some people prefer cheaper products with low quality due to the decrease of prices. Apart from that, some businessmen in China saw that good amount of money was flowing to the construction sector and then decided to get into the sector without knowing anything about the business. They competed against each other so relentlessly that the prices dropped down and down, thus, the profit was zeroised. These are the two main reasons of the regression in the Chinese market.”.