China's largest property developer, Country Garden, has reported a loss of US$7.1 billion for the first six months of 2023. This has caused investors to worry about a potential debt default, leading to a company's share price decline. Another primary developer, China Evergrande Group, has also been struggling financially, with a loss of $4.5 billion over the same period. The company has filed for bankruptcy protection in the United States last month. It gained international attention in 2021 after defaulting on $300 billion in debt, which has resulted in the present crisis. Sales of new homes in China by the country's top 100 developers fell by 33 percent in July compared to last year. This has resulted in a decline in prices as well. The impact of this situation has rippled throughout the Chinese economy. In the short term, there has been a decrease in demand for building materials and labor, which has led to a slowdown in hiring and a decline in consumer spending.