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"Renewed debt fears trigger sharp decline in China property stocks"

Originally Published 2 years ago — by CNBC

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Source: CNBC

Chinese property stocks, including Country Garden, tumbled on renewed debt fears for the sector. JP Morgan downgraded Country Garden and its property services arm, citing liquidity concerns unless the Chinese government provides more policy support. The Hang Seng Mainland Property Index fell over 5%, while shares of Longfor Group, Sunac, China Vanke, and China Overseas Land and Investment also declined. Weakness in China's real estate sector could have long-term economic implications and potentially impact neighboring countries. The property market is expected to experience an "L-shaped recovery" with steep declines followed by a slow recovery rate.