Markets & Finance risk-off · 1–3 years
A what‑if from the future

What if China land-revenue collapse forces austerity and growth downgrade?

A structural drop in local-government land-sale income forces fiscal retrenchment and public-investment cuts, lowering China's growth trajectory; the fiscal drag weighs on global industrial demand and commodity exporters.

22%
our model probability
over 1–3 years
prediction markets — the market's odds
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The butterfly cascade

How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.

Resolution timeline — how this probability is moving

Our model's odds (electric blue) over time vs the market's (Polymarket, amber), from the past toward the 1–3 years horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. Loading the probability audit trail…

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What it would mean

If this plays out, it is a risk-off shock. A structural drop in local-government land-sale income forces fiscal retrenchment and public-investment cuts, lowering China's growth trajectory; the fiscal drag weighs on global industrial demand and commodity exporters. The trigger decomposes into signed root‑shocks — China growth ▼ · Global growth ▼ · Industrial demand ▼ · Risk appetite ▼ — which propagate through our causal graph to the markets below.

Methodology. Probability and impact are anchored to history and scored against what actually happens — wins and losses, in public, at Reality Check. Market odds live from Polymarket & Kalshi. By Vikas Singh, Quantitative Strategist. Updated 2026-08-13.