Rural migrants can’t afford $1 million for a one bedroom flat in Shanghai or Beijing, or a $2-300k one bedroom in a tier 88 city. This bubble is going to pop, and real estate in China will stabilize to more affordable Japanese housing prices (well, that’s my prediction).

Just letting the real estate companies fail isn’t going to much, everyone knew Evergrande was doomed back in 2012 when that trader in HK was banned for shorting it.