Officials: China real estate recovering from debt crackdown
1 year, 9 months ago

Officials: China real estate recovering from debt crackdown

Associated Press  

BEIJING — China’s vast real estate industry is recovering from a slump triggered by tighter debt controls, a deputy central bank governor said Friday, after a wave of defaults by developers rattled global financial markets. Pan Gongsheng mentioned Evergrande Group, the global industry’s most heavily indebted developer, but gave no update on its government-supervised efforts to restructure 2.1 trillion yuan in debt to banks and bondholders. “The financing environment, especially for high-quality enterprises, has improved significantly.” Pan gave no indication Beijing planned significant changes in its debt controls, known as “three red lines.” China’s economic growth slid in mid-2021 after regulators who worry debt levels are dangerously high blocked Evergrande and other heavily indebted developers from borrowing more money. Meanwhile, the central bank governor said Beijing plans to keep the politically sensitive exchange rate of its yuan stable after it tumbled to a 14-year low against the U.S. dollar in September.

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History of this topic

China retail sales slow as consumers hold back, while home prices fall
1 week, 2 days ago

China retail sales slow as consumers hold back, while home prices fall

Associated Press  

BANGKOK — Chinese retail sales slowed in November and housing prices fell, the government said Monday, with demand still lackluster despite a flurry of stimulus measures over the past few months. “However, we must Retail sales rose 3% from a year earlier, down from October’s 4.8% increase and below the 3.5% annual rate in January-November. “China’s economy appears to have …

Targeted incremental policies boosting growth
2 weeks, 6 days ago

Targeted incremental policies boosting growth

China Daily  

A building under construction in Shanghai. CHINA DAILY After a strong performance in the first quarter, the Chinese economy faced mounting pressures in the second and third quarters due to real estate market changes and weakened domestic demand. From January to October, investment in infrastructure increased by 4.3 percent year-on-year, investment in manufacturing surged by 9.3 percent, and investment in …

Targeted incremental policies boosting growth
2 weeks, 6 days ago

Targeted incremental policies boosting growth

China Daily  

A building under construction in Shanghai. CHINA DAILY After a strong performance in the first quarter, the Chinese economy faced mounting pressures in the second and third quarters due to real estate market changes and weakened domestic demand. From January to October, investment in infrastructure increased by 4.3 percent year-on-year, investment in manufacturing surged by 9.3 percent, and investment in …

China’s property slump may extend into 2025, Fitch Ratings says
3 weeks, 5 days ago

China’s property slump may extend into 2025, Fitch Ratings says

Hindustan Times  

-- China’s multiyear property crisis is set to drag on in 2025 as prices and sales remain weak despite the government’s stimulus push to spur demand, according to Fitch Ratings. China’s property slump may extend into 2025, Fitch Ratings says China’s new home prices will fall by another 5% next year, as measured by China’s official statistics bureau, or roughly …

China Residential Property Sales Rebound as Stimulus Boosts Buyer Morale
1 month, 3 weeks ago

China Residential Property Sales Rebound as Stimulus Boosts Buyer Morale

Live Mint  

China's residential property sales rose in October, marking the first on-year increase since 2024. The value of new-home sales increased by 7.1%, reversing a 37.7% slump in September. The improvement was driven by stimulus measures that eased borrowing costs and relaxed buying restrictions in major cities. However, analysts remain concerned about the sector's decline and the need for further policy …

Foreign holdings of Chinese bonds see net increase of $20b in July
4 months, 1 week ago

Foreign holdings of Chinese bonds see net increase of $20b in July

China Daily  

BEIJING - The net increase in foreign holdings of domestic bonds stood at $20 billion in July, soaring 1.4 times from the previous month, data from China's State Administration of Foreign Exchange showed Thursday. Foreign investors were still highly motivated to allocate RMB assets as cross-border capital flow improved in July, it said. China's foreign trade also continued to grow …

Country Garden sales drop 72% as China’s housing woes persist
4 months, 2 weeks ago

Country Garden sales drop 72% as China’s housing woes persist

Hindustan Times  

-- Country Garden Holdings Co.’s sales slump dragged on last month, adding to the Chinese developer’s woes as it tries to avoid liquidation. Country Garden Holdings Co.’s sales slump dragged on last month, adding to the Chinese developer’s woes as it tries to avoid liquidation Contracted sales for July dropped 72% from a year earlier to 3.41 billion yuan, following …

China needs more momentum in its economic recovery
5 months, 2 weeks ago

China needs more momentum in its economic recovery

China Daily  

CAI MENG/CHINA DAILY China's economy is still in a post-pandemic recovery stage, with production indicators in January and February showing positive trends. From January to April, China's exports grew 11.4 percent year-on-year, and manufacturing investment maintained a rapid growth rate. Driven by exports and manufacturing investment, industrial production recovered relatively well, with a growth rate of 6 percent from January …

China rolls out new measures to fix its property crisis, spur growth
7 months, 1 week ago

China rolls out new measures to fix its property crisis, spur growth

Associated Press  

China announced a slate of fresh measures Friday to reinvigorate its ailing property industry after the latest data showed housing prices have slumped nearly 10% since the start of the year. He Lifeng, a vice premier, said officials would roll out policies to suit each city and “fight the tough battle of dealing with the risk of unfinished commercial housing.” …

Chinese Property Stocks Rally on Hope for More Policy Support
7 months, 1 week ago

Chinese Property Stocks Rally on Hope for More Policy Support

Hindustan Times  

Shares of Chinese property developers extended a rally as investors expect Beijing to unveil more policy support after a Friday meeting to salvage the beleaguered property market. Chinese Property Stocks Rally on Hope for More Policy Support A Bloomberg Intelligence gauge of Chinese real estate stocks rose 2.8% after an 11% jump Thursday. “The meeting illustrates Chinese government’s seriousness about …

China’s economy shows signs of improvement, but its property sector is still in the doldrums
9 months, 1 week ago

China’s economy shows signs of improvement, but its property sector is still in the doldrums

Associated Press  

HONG KONG — China’s manufacturing and investment improved in the first two months of the year, while weakness in the property sector weighed on the economy, the National Bureau of Statistics said Monday. The property market is “still in a state of adjustment and transition” but policies outlined at China’s annual legislative session earlier this month will promote “stable and …

Can Indian real estate market face a crisis like China's Evergrande?
10 months, 3 weeks ago

Can Indian real estate market face a crisis like China's Evergrande?

Hindustan Times  

A Hong Kong court on January 29 ordered the liquidation of embattled Chinese real estate giant Evergrande, a move that is likely to impact China’s financial system and the confidence of global investors. But unlike China, India's real estate sector gradually recovered thanks to government initiatives and the setting up of the Real Estate Regulatory Authority across the country. “Following …

China’s economy is forecast to slow sharply in 2024, the World Bank says, calling recovery ‘fragile’
1 year ago

China’s economy is forecast to slow sharply in 2024, the World Bank says, calling recovery ‘fragile’

Associated Press  

HONG KONG — China’s economy grew at a 5.2% pace in the first three quarters of the year and showed signs of improvement in November, with factory output and retail sales rising, the government said Friday. “To further promote economic recovery, we need to overcome some difficulties and challenges.” China’s economy has the advantages of a vast market of 1.4 …

Double Whammy: China's already beleaguered banks may be pushed to play lifebuoy for realty in rags
1 year ago

Double Whammy: China's already beleaguered banks may be pushed to play lifebuoy for realty in rags

Firstpost  

This risky form of support threatens to worsen an already grim outlook. Financial institutions like Industrial and Commercial Bank of China Ltd. which is already grappling with surging bad loans and historically low net interest margins, may soon be asked to provide unsecured loans to developers, many of whom are either in default or on the verge of collapse, according …

China’s economy shows sparks of life, despite persisting weakness in troubled real estate sector
1 year, 1 month ago

China’s economy shows sparks of life, despite persisting weakness in troubled real estate sector

Associated Press  

BEIJING — China’s economy showed more signs of reviving in October as retail sales and manufacturing picked up though the property sector remained sluggish, the government said Wednesday. Disruptions to manufacturing, transport, travel and virtually every other aspect of life during the pandemic ended nearly a year ago when China’s leaders abandoned their “zero-COVID” policies aimed at preventing infections. Overall, …

Stock market today: Asian markets edge lower as China reports slower growth in the last quarter
1 year, 2 months ago

Stock market today: Asian markets edge lower as China reports slower growth in the last quarter

Associated Press  

BANGKOK — Shares have fallen in Asia after China reported that its economy grew at a 4.9% annual pace in July-September, down from 6.3% in the previous quarter. China’s National Bureau of Statistics said the world’s second-largest economy slowed in the summer as global demand for exports faltered and the ailing property sector sank deeper into crisis. A sharp jump …

May not be a 'Chinese Century': How Xi Jinping's economic mismanagement can derail Beijing's big dreams
1 year, 3 months ago

May not be a 'Chinese Century': How Xi Jinping's economic mismanagement can derail Beijing's big dreams

Firstpost  

A slower China means less demand for commodities and imports and less geopolitically-driven Chinese investments and influence in places like Africa The at least $17.7 trillion Chinese economy has been facing a slowdown recently, which is hard to miss due to China’s global trade and investment connections. The IMF expects China’s economy to expand 5.2 per cent this year after …

Explained | On China’s economic slowdown
1 year, 3 months ago

Explained | On China’s economic slowdown

The Hindu  

The story so far: China, at the start of this month announced more measures to revive its flagging economy with major banks clearing the path for additional cuts in lending rates and the amount of funds institutions require to hold in foreign exchange reserves, hoping to prevent a further downturn in the ailing property sector. Economic data coming out of …

China’s government tries to defuse economic fears after real estate developer’s debt struggle
1 year, 4 months ago

China’s government tries to defuse economic fears after real estate developer’s debt struggle

Associated Press  

BEIJING — China’s government is trying to reassure jittery homebuyers after a major real estate developer missed a payment on its multibillion-dollar debt, reviving fears about the industry’s shaky finances and their impact on the struggling Chinese economy. Country Garden’s debt struggle might “drive potential homebuyers away from privately owned developers,” Moody’s Investors Service said in a report. That would …

China's property sales static despite policies to stimulate market: Report
1 year, 10 months ago

China's property sales static despite policies to stimulate market: Report

Hindustan Times  

China's property sales remain static despite China's central bank enacting policies to stimulate the market, New York-based NTD reported. According to China Real Estate Information Corporation, there is a consensus that the real estate sector is on a downward spiral and is truly heading for an era of negative growth. According to statistics from the China Index Academy on January …

Can China fix its property crisis?
1 year, 11 months ago

Can China fix its property crisis?

Live Mint  

To judge by the high-rises dotted along the shore in Haiyang, a small coastal city, Country Garden’s prospects are pretty meagre. The volume of floor space sold across the country fell by 24% in 2022, the biggest slump since data became available in 1992; property investment was down 10% year on year, the first drop on record. This is a …

China’s economic growth falls to 3%, gradually reviving
1 year, 11 months ago

China’s economic growth falls to 3%, gradually reviving

Associated Press  

BEIJING — China’s economic growth fell to its second-lowest level in at least four decades last year under pressure from anti-virus controls and a real estate slump, but activity is reviving after restrictions that kept millions of people at home and sparked protests were lifted. Economic growth sank to 2.9% over a year earlier in the three months ending in …

China's property sector support fails to lure bond investors
2 years ago

China's property sector support fails to lure bond investors

Hindustan Times  

The battered bonds of Chinese property developers are showing tentative signs of a rebound after Beijing's measures to support the cash-strapped sector, but long-term investors are keeping away until they see signs of a deeper recovery. High-yield dollar-denominated bonds of companies such as Powerlong Real Estate Holdings and Country Garden Holdings have rallied since late November, cheered by the Chinese …

Explained | How bad is China’s property crisis and how did it get here?
2 years, 3 months ago

Explained | How bad is China’s property crisis and how did it get here?

The Hindu  

The story so far: China, the world’s second-largest economy, is facing a crisis in its once-booming property sector. Meanwhile, July data from China’s National Bureau of Statistics showed that property investment fell in the country by over 12 per cent year-on-year, the steepest fall this year, per a Reuters report. Read also: China property crisis is spiralling with homebuyers’ boycott …

Pinched by housing downturn, Chinese families rein in spending
2 years, 3 months ago

Pinched by housing downturn, Chinese families rein in spending

Live Mint  

A two-decade boom in real estate made many Chinese families feel richer. “If more people suffer from income loss, the foundation that supports the bubble in the property market will be shaken," said 39-year old Ms. Tang, who works in the finance industry. As fears of declining home values deepen, more people will re-evaluate their spending and investment decisions, said …

Explained: How will China’s property crisis impact its economy?
2 years, 4 months ago

Explained: How will China’s property crisis impact its economy?

Firstpost  

The recent spate of mortgage strikes by homebuyers across China has exposed the risk that has accumulated in the market as it has developed over the past two decades China has been trimming interest rates recently – in contrast to other major economies – as it tries to stem the economic effects of its zero-Covid policy and address a growing …

China cuts interest rate to shore up sagging economy
2 years, 4 months ago

China cuts interest rate to shore up sagging economy

Associated Press  

BEIJING — China’s central bank trimmed a key interest rate Monday to shore up sagging economic growth at a politically sensitive time when President Xi Jinping is trying to extend his hold on power. The ruling party has effectively acknowledged it cannot hit this year’s official 5.5% growth target after anti-virus curbs disrupted trade, manufacturing and consumer spending. “More efforts …

Xi’s Covid Zero Policy Prolongs Stress in China Real Estate Debt Market
2 years, 7 months ago

Xi’s Covid Zero Policy Prolongs Stress in China Real Estate Debt Market

Bloomberg  

Yields Top 22% as Covid-Zero Policy Stings China Dollar Bonds China Credit Tracker Share this article Fresh challenges are confronting Chinese borrowers in global debt markets after authorities doubled down on the nation’s Covid Zero policy. The focus remains on China’s offshore junk note market—dominated by property developers—after stress levels remained at their most elevated level in April, Bloomberg’s credit …

China’s economy grows still-weak 4.8% in January-March
2 years, 8 months ago

China’s economy grows still-weak 4.8% in January-March

Associated Press  

BEIJING — China’s economic growth edged up to a still-weak 4.8% over a year earlier in the first three months of 2022 as industrial cities shut down to fight coronavirus outbreaks, threatening to disrupt global trade and manufacturing. Growth in the world’s second-largest economy crept up from the previous quarter’s 4% following a slump triggered by tighter controls on use …

中国商业地产投资意愿创新高 上海成首选投资目的地
2 years, 8 months ago

中国商业地产投资意愿创新高 上海成首选投资目的地

China Daily  

地产服务与投资机构的报告显示，随着境内外投资者投资意向的上涨，2022年中国商业地产投资有望首次突破3000亿元。上海是最受欢迎的投资目的地，过去一年的商业地产成交量占到全国总成交量的四成。 Skyscraper window cleaners clean the exterior of the Guiyang International Trade Center in Guiyang, Guizhou province, on March 15. China's annual commercial real estate investment is expected to exceed 300 billion yuan for the first time in 2022. 2022年中国商业地产投资有望首度突破3000亿元。 It shows that China's economy is on track of recovery this year as countercyclical policies and structural transformation ensure stable …

China’s slowing economy in spotlight as legislature meets
2 years, 9 months ago

China’s slowing economy in spotlight as legislature meets

Associated Press  

BEIJING — China’s ruling Communist Party is temporarily turning away from its longer-term ambitions to focus on pulling the economy out of a slump as the country heads into the annual meeting of its ceremonial legislature. The National People’s Congress, usually used to showcase big initiatives, is overshadowed this year by a “policy pivot” begun in December by President Xi …

Evergrande can’t pay its debts. China is scrambling to contain the fallout
3 years ago

Evergrande can’t pay its debts. China is scrambling to contain the fallout

CNN  

Hong Kong CNN Business — Evergrande has defaulted on its debt. “China’s leadership is attempting to play it cool, but the circumstances surrounding Evergrande’s downward spiral raises serious questions about Xi Jinping’s stewardship over China’s rapidly cooling economy,” said Craig Singleton, an adjunct fellow in the China Program at the Foundation for Defense of Democracies, a research institute based in …

China pumps $188 billion into the economy to counter real estate slump
3 years ago

China pumps $188 billion into the economy to counter real estate slump

CNN  

Hong Kong CNN Business — China has decided it’s time to loosen its purse strings and pump money into the economy in a bid to stave off threats to the recovery. The decision — the second cut to that ratio this year — came on the same day China’s Politburo signaled that it may take more aggressive actions to protect …

China tries to reassure on Evergrande as default fears rise
3 years ago

China tries to reassure on Evergrande as default fears rise

Associated Press  

BEIJING — China’s central bank expanded the supply of money for lending Monday as Beijing tried to reassure its public and investors the economy can be protected if a troubled real estate developer’s $310 billion mountain of debt collapses. The People’s Bank said it wants to “support development of the real economy.” It said the reserve cut was no change …

Evergrande crisis: US Fed warns China’s property problems could hurt global markets and the US economy
3 years, 1 month ago

Evergrande crisis: US Fed warns China’s property problems could hurt global markets and the US economy

CNN  

Hong Kong CNN Business — Troubles in China’s vast real estate sector could spill over to the global economy — including the United States, according to the Federal Reserve. The US central bank warned Monday that China’s ongoing property woes could elevate “financial stresses in China, could further strain global financial markets and negatively affect the United States.” In its …

Explained: Why China's property crash isn't a Lehman Brothers moment
3 years, 1 month ago

Explained: Why China's property crash isn't a Lehman Brothers moment

The Hindu  

Any story you tell about China, with its population of 1.4 billion and an economy that has more than doubled over the last decade, will always involve big numbers ― scary numbers. New home sales plummet by a third With property being a key driver of economic growth ― contributing about 29 per cent to China's gross domestic product ― …

Chinese economy slows as government reconfigures growth formula to control debt
3 years, 1 month ago

Chinese economy slows as government reconfigures growth formula to control debt

Firstpost  

For China, the Bank of America cut its full-year forecast from 8 percent to 7.7 percent, and slashed next year’s outlook from 5.3 percent to just 4 percent Beijing: China’s economic rebound from the coronavirus pandemic is stalling as President Xi Jinping’s government cracks down on surging corporate debt. Beijing “doesn’t want growth at all costs, followed by the likely …

China's economy slows as Beijing wrestles with debt
3 years, 1 month ago

China's economy slows as Beijing wrestles with debt

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Beijing “doesn’t want growth at …

China’s real estate crisis: Evergrande and these developers are already in trouble
3 years, 1 month ago

China’s real estate crisis: Evergrande and these developers are already in trouble

CNN  

CNN Business — China’s real estate crisis isn’t showing any sign of letting up. They could Earlier this month, the People’s Bank of China said that Evergrande had mismanaged its business, but risks to the financial system were “controllable.” And at financial forum in Beijing last week, Chinese Vice Premier Liu He stressed that risks were generally under control, despite …

China’s real estate crisis: Evergrande and these developers are already in trouble
3 years, 1 month ago

China’s real estate crisis: Evergrande and these developers are already in trouble

CNN  

CNN Business — China’s real estate crisis isn’t showing any sign of letting up. They could Earlier this month, the People’s Bank of China said that Evergrande had mismanaged its business, but risks to the financial system were “controllable.” And at financial forum in Beijing last week, Chinese Vice Premier Liu He stressed that risks were generally under control, despite …

Fear of China’s Evergrande Contagion Spreading to Global Commodity Markets Looms Large
3 years, 2 months ago

Fear of China’s Evergrande Contagion Spreading to Global Commodity Markets Looms Large

News 18  

Buried under a huge $305 billion debt and almost on the brink of collapse, China’s real estate giant Evergrande Group defaulted twice on payments to offshore bondholders in September 2021. With large offshore investments in Chinese high-yield real estate bonds, financial markets in other countries now are exposed to substantial risk of contagion. The empire of Evergrande Group spans over …

Evergrande crisis shines a light on China’s millions of empty homes
3 years, 2 months ago

Evergrande crisis shines a light on China’s millions of empty homes

CNN  

Evergrande’s unraveling is still commanding global attention, but its troubles are part of a much bigger problem. The People’s Bank of China said the company had mismanaged its business but risks to the financial system were “controllable.” “In recent years, the company has failed to manage its business well and to operate in accordance with market changes,” Zou Lan, director …

Economy in Rebound, China Borrows at Negative Interest Rates for the First Time
4 years, 1 month ago

Economy in Rebound, China Borrows at Negative Interest Rates for the First Time

News 18  

China is cashing in on fears that the West’s faltering economic recovery will keep interest rates near record lows for a long time. “It shows investors are still underexposed to China and there definitely is a scarcity value perceived in these bonds,” said Deutsche Bank’s head of China onshore debt capital markets, Sam Fischer. European investors seized the opportunity to …

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