TheeconomicconsequencesforChinaofanewKoreanWar(6)

Chinese real property values, especially in the first- and second-tier towns that are overbuilt with many properties purchased as unoccupied “investments,” would risk collapse, as investors become unable to keep up the shell game premised on cheap financing and rising prices.
In order to head off a property crash, the People’s Bank of China would have to resort to flooding the economy with yuan and the CPC ordering many make-work projects to keep the army of unemployed busy, at least for a time. Inflation would consequently skyrocket, leading to devaluation and additional pressure to raise both real and monetary interest rates. People borrowing from underground banks and online micro lenders would be hit hard.
Sensing disaster reminiscent of 1937-49, or 1989 (all within living memory), Chinese citizens with means would en masse attempt to squirrel wealth away abroad by any means possible irrespective of any attempt by Beijing to control capital outflows, putting further pressure on the yuan and inflation.