Rural lenders across China are struggling to offload foreclosed properties even with aggressive discounting. Hundreds of auctions remain stuck on the market—nobody's buying. This real estate slump isn't just a property problem anymore. It's bleeding into the financial system directly. When banks can't move inventory and absorb losses, it ripples through credit conditions, lending standards tighten, and broader economic stress builds. For markets globally, when major economies face domestic financial headwinds like this, capital seeks alternatives. Understanding these dynamics matters if you're thinking about how traditional finance troubles shape digital asset demand.