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Real Estate Developers

All articles tagged with #real estate developers

real-estate-economy1 year ago

"China's Property Crisis: Struggling Developers Face Bankruptcy as Real Estate Slump Hits Municipal Bond Market"

China's housing minister stated that deeply troubled real-estate companies must go bankrupt and be restructured, emphasizing the government's focus on ensuring delivery of property projects rather than protecting developers' businesses. This indicates no policy shift for China's housing sector, dispelling speculation that the country is relaxing its crackdown on debt in the sector. The statement comes amidst the ongoing real-estate debt crisis that has already led to the liquidation of property giant Evergrande and a petition for liquidation against Country Garden, reflecting Beijing's stance on addressing the years-long real-estate crisis.

via Business Insider|
#bankruptcy#china#government-policy
economy2 years ago

"Government Intervention Urgently Required to Stabilize China's Deepening Property Crisis"

China's property market is in need of more government support to prevent further deterioration, as existing home prices fell in October by the most since 2014 and outstanding property loans fell for the first time in history. The government's focus on boosting demand has not addressed the credit risk related to developers, which could lead to a self-fulfilled confidence crisis. Real estate and related sectors currently account for about 22% of China's GDP. Recent data suggests that the property sector troubles are worsening, with larger cities experiencing declines in home prices. Policymakers have signaled more support, including allowing lending to real estate developers and emphasizing the development of affordable housing. However, more support is still needed to boost private sentiment.

via CNBC|
#china#credit-risk#economy
business2 years ago

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

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.

via CNBC|
#business#china#debt-fears
economy2 years ago

China's Enormous Debt Burden: A Closer Look

China is facing a significant debt crisis at home, with trillions of dollars owed by local governments, their financial affiliates, and real estate developers. While China has lent nearly $1 trillion to developing countries, it has been reluctant to cancel large debts owed by struggling nations. China's state-controlled banking system is wary of accepting losses on foreign loans when it faces greater losses on loans within China. Official data on China's debt is limited, but researchers estimate that overall debt within China has reached 282 percent of the country's annual economic output. The rapid accumulation of debt relative to its economy makes managing it more challenging. The debt troubles have also made it difficult for Chinese banks to accept losses on their loans to lower-income countries, which now face considerable economic difficulties.

via The New York Times|
#china#debt-crisis#developing-countries