Yes, I believe the real estate sector is the biggest risk to the Chinese economy. After seeing what happened in the USA a few years back when the real estate market crashed, it had a detrimental effect on the economy as a whole. The government had to provide stimulus packages, and buyout a few banks which lost everything in mortgages. I believe the same thing could happen in China.
Australia is the biggest export market for the china where the Chief Economist at of the People's Bank of China said that the chance of a hard landing in the Australia;s biggest exporting market was very low as well as the property sales were pretty weak in the first seven months of the year.so i think the real estate sector the biggest risk to the Chinese economy.
China is currently in the midst of slumping property prices, and is instituting measures to counteract the potential crisis. China has been through a similar situation before, as recently as 2008, and was able to pull through. The country has other solid economic ingredients that can help it pull through this temporary banking crisis.
I understand that real estate can bring in good income but it is not always everything. China is known for being great in merchandise production hence the reason I think the real estate sector will not be such a huge risk to the Chinese economy. I am sure that China could balance out the real estate loss with the amount of deal and contracts they have over seas for production. I have no worries for the Chinese economy.