Explained: How will China’s property crisis impact its economy?
2 years, 7 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 property crisis. Indeed, a commonly observed pattern in China’s property development industry is for developers to purchase lands, pledge them to banks to get loans, start projects, begin the presale process with buyers and then use these funds to purchase lands for other projects. Author’s chart based on figures from National Bureau of Statistics of China The weak market has substantially reduced the funding available to developers, as figure 2 below shows. The risk from the real estate sector could also spill into the wider economy via banks and local governments, which are the two biggest entities supporting China’s growth.

China Market Property Loans Crisis Chinese Cent Funds Banks Buyers Developers Mortgage Strikes  property  chinese  impact  explained  developers  banks  chinas  economy  cent  market  loans  funds  crisis  buyers

History of this topic

China’s ¥5.6 Trillion Real Estate Support Has Yet to Deliver. Here’s Why.
4 weeks, 1 day ago

China’s ¥5.6 Trillion Real Estate Support Has Yet to Deliver. Here’s Why.

The Diplomat  

For much of the past decade, China’s real estate sector has been a key driver of economic growth, contributing roughly a quarter of the country’s GDP. The slowdown has disrupted employment, dampened consumer confidence, and strained local government revenues, turning what was once China’s economic engine into a source of prolonged financial distress. Launched in January 2024, the program encourages …

China's home prices, sales fall further in January: Report
1 month, 4 weeks ago

China's home prices, sales fall further in January: Report

Hindustan Times  

China's sales of new housing and prices for existing residential units both continued to decline in January, a leading real estate research institute said on Saturday. The value of property sales by the top 100 real-estate developers in China was down almost 17% in January on year The average price per square meter for existing residential properties was down just …

China's property sales record positive growth in December
2 months, 2 weeks ago

China's property sales record positive growth in December

China Daily  

A view of a property project under construction in Yantai, Shandong province, May 12, 2024. In December, the month-on-month sales prices of commercial residential properties in China's first-tier cities rose, while the overall decline in second and third-tier cities narrowed, data collected from 70 large and medium-sized cities by the National Bureau of Statistics showed on Friday. Prices of second-hand …

How Beijing is seeking to jump-start wavering economy
2 months, 2 weeks ago

How Beijing is seeking to jump-start wavering economy

The Hindu  

As China's economy struggles, officials in Beijing have the arduous task of formulating a policy response that can ensure sustainable growth in what promises to be a challenging year ahead. Rate cuts China's central bank cut two key interest rates to historic lows in October, just days after the country posted its lowest quarterly growth in 18 months. Beijing in …

China's property crash a warning for Australia's housing market
2 months, 3 weeks ago

China's property crash a warning for Australia's housing market

ABC  

Most Australians have become all too aware of how tightly our economic fortunes have become entwined with China, but perhaps we're still guilty of ignoring some key warning signs from our largest trading partner. As reported by the Wall Street Journal, a Barclays Bank report estimates the cumulative wealth destruction from China's property price falls so far at $US18 trillion, …

Falling rents in China expose its crippled real estate sector and a deeper economic flaw
3 months ago

Falling rents in China expose its crippled real estate sector and a deeper economic flaw

Firstpost  

The sharp drop in rents across China’s cities shows a huge oversupply of homes exposing serious problems in the country’s real estate market and the economy China’s urban rental market is facing a major slump exposing weaknesses in the country’s housing and economic systems. In 100 major cities, average rents have hit their lowest level in four years showing a …

China Property Flare-Ups Resurface as Crisis Enters Fifth Year
3 months, 1 week ago

China Property Flare-Ups Resurface as Crisis Enters Fifth Year

Live Mint  

One of China’s leading developers is now on authorities’ radar for default risk. As China’s property debt crisis enters its fifth year, there’s little indication that distressed developers are finding it easier to repay debt as a slump in home sales continues. “Against this backdrop, we can’t rule out the possibility of some more defaults next year, albeit the overall …

China’s coming stimulus is necessary but likely insufficient
4 months, 3 weeks ago

China’s coming stimulus is necessary but likely insufficient

Live Mint  

Hopes for a massive fiscal stimulus have sent Chinese stocks on a roller-coaster ride in the past month or so. These local governments have racked up piles of debt over the years as they are responsible for the bulk of public spending from infrastructure to education, but lack reliable revenue sources to match. China’s housing market implosion has drastically reduced …

China Residential Property Sales Rebound as Stimulus Boosts Buyer Morale
4 months, 4 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 …

China unveils new measures to stabilize housing market
5 months, 1 week ago

China unveils new measures to stabilize housing market

China Daily  

A property project under construction in Beijing. BEIJING -- Chinese officials announced new measures on Thursday to cement signs of stabilization in the property sector, after a bundle of pro-housing policies rolled out last month brought about "positive changes in the market." Under the "white list" mechanism launched in January, local authorities are recommending that financial institutions provide financial support …

China Home Sales Slump Intensified in September, Before Stimulus
6 months ago

China Home Sales Slump Intensified in September, Before Stimulus

Live Mint  

China’s residential slump deepened in September before the government released a basket of measures to put a floor under the yearslong property crisis. The value of new-home sales from the 100 biggest real estate companies fell about 37.7% from a year earlier to 251.7 billion yuan, faster than the 26.8% decline in August, according to preliminary data from China Real …

Experts see real estate stability
7 months, 1 week ago

Experts see real estate stability

China Daily  

A residential property project is under construction in Hefei, Anhui province. CHEN SANHU/FOR CHINA DAILY China's real estate industry is expected to stabilize gradually amid stronger policy support for reducing inventories, improving new supplies and easing liquidity stress of developers, as the country accelerates the establishment of a new development model for long-term high-quality development of the sector, experts said. …

Boost to market confidence, growth momentum
7 months, 3 weeks ago

Boost to market confidence, growth momentum

China Daily  

A property construction site in Yantai, Shandong province. On the property front, the resolution said China will move faster to establish a housing system that supports both housing rentals and purchases and foster a new development model for the real estate sector. Notably, the resolution said municipal governments will be given greater decision-making powers to regulate the real estate market, …

Boost to market confidence, growth momentum
7 months, 3 weeks ago

Boost to market confidence, growth momentum

China Daily  

A property construction site in Yantai, Shandong province. On the property front, the resolution said China will move faster to establish a housing system that supports both housing rentals and purchases and foster a new development model for the real estate sector. Notably, the resolution said municipal governments will be given greater decision-making powers to regulate the real estate market, …

China’s rich spend millions on Shanghai property; Luxury apartments worth $3.8 million five times oversubscribed
9 months ago

China’s rich spend millions on Shanghai property; Luxury apartments worth $3.8 million five times oversubscribed

Hindustan Times  

-- A $15 million penthouse was snapped up hours after it went on sale. Photographer: Raul Ariano/Bloomberg Shanghai’s luxury real estate market is a bright spot in China’s bleak property sector. The recent buyers still see luxury residences as an optimal choice, given Shanghai’s financial hub status, the scarcity of supply of such dwellings and the discount that new offerings …

China unveils 'historic' steps to stabilise crisis-hit real estate sector
10 months, 2 weeks ago

China unveils 'historic' steps to stabilise crisis-hit real estate sector

Hindustan Times  

China on Friday announced "historic" steps to stabilise the crisis-hit property sector, allowing local governments to buy "some" apartments, relaxing mortgage rules and pledging to deliver unfinished homes. China Real Estate Newspaper, a publication managed by the housing ministry, said the "heavyweight policies" marked "a significant historic moment" for the property sector. After waves of support measures over the past …

China rolls out new measures to fix its property crisis, spur growth
10 months, 2 weeks 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
10 months, 2 weeks 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 …

Measures released to digest housing inventories
10 months, 2 weeks ago

Measures released to digest housing inventories

China Daily  

Potential homebuyers ask queries on housing projects at a real estate agency in Beijing in March. It is required to abide by the spirit of the Political Bureau of the Communist Party of China Central Committee meeting on April 30, fully implement the central government's work deployment, respond to the latest supply and demand conditions as well as people's expectation …

China economy: All-important property market shows no sign of rebound in new year
1 year ago

China economy: All-important property market shows no sign of rebound in new year

CNN  

Editor’s Note: Sign up for CNN’s Meanwhile in China newsletter which explores what you need to know about the country’s rise and how it impacts the world. Hong Kong CNN — China’s key real estate sector hasn’t shown much improvement following a flurry of government measures taken to boost the industry, even as other parts of the economy seem to …

More policies set to back property sector
1 year ago

More policies set to back property sector

China Daily  

A salesman introduces a residential project to potential homebuyers in Taiyuan, Shanxi province. WEI LIANG/CHINA NEWS SERVICE China is expected to roll out more policies to support the financing of real estate developers while improving the effects of policy implementation, amid increased efforts to improve their liquidity, thereby boosting the healthy development of the real estate industry, experts said on …

Chinese property developer sees surge in stock prices
1 year ago

Chinese property developer sees surge in stock prices

China Daily  

The booth of China Vanke during an expo in Wuhan, Hubei province. Share prices of Chinese property developer China Vanke Co surged by 5.71 percent and 10.33 percent respectively on the Shenzhen and Hong Kong stock bourses at closing on Tuesday, which experts said indicated positive market sentiment over the developer's liquidity prospects. They also said China is expected to …

China pledges more help for its ailing property market, as IMF forecasts economy will slow
1 year, 1 month ago

China pledges more help for its ailing property market, as IMF forecasts economy will slow

Associated Press  

BANGKOK — Markets in China sank Friday despite a fresh flurry of measures to help prop up the ailing property sector, as the International Monetary Fund forecast that the Chinese economy will continue to slow in coming years. “Financial support for the development of the housing rental market should highlight key points and target shortcomings, mainly in large cities, focusing …

Order to liquidate property giant China Evergrande is just one step in fixing China’s debt crisis
1 year, 2 months ago

Order to liquidate property giant China Evergrande is just one step in fixing China’s debt crisis

Associated Press  

BANGKOK — A Hong Kong court’s order to liquidate China Evergrande, the world’s most heavily indebted real estate developer, is only a tentative step toward resolving a debt crisis that is haunting financial markets and dragging on the Chinese economy. The order by the Hong Kong High Court also is not a remedy for the crisis of confidence haunting China’s …

Order to liquidate property giant China Evergrande is just one step in fixing China's debt crisis
1 year, 2 months ago

Order to liquidate property giant China Evergrande is just one step in fixing China's debt crisis

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 Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy A Hong Kong court’s order …

China expands access to loans for property developers, acting to end its prolonged debt crisis
1 year, 2 months ago

China expands access to loans for property developers, acting to end its prolonged debt crisis

Associated Press  

BANGKOK — China has rolled out new rules meant to expand access to commercial bank loans for property developers as Beijing doubles down on its effort to end a prolonged crisis in the real estate industry. The policies will allow real estate companies to use bank loans pledged against commercial properties such as offices and shopping malls to repay their …

Desperate Chinese property developers resort to bizarre marketing tactics
1 year, 2 months ago

Desperate Chinese property developers resort to bizarre marketing tactics

Live Mint  

China’s real-estate crisis has dragged down the economy, caused massive layoffs and pushed multibillion-dollar companies to the point of collapse. A property company in Tianjin ran a video A residential compound in eastern China’s Zhejiang province promised last year to give home buyers a 10-gram gold bar. Earlier this month, Sheng Songcheng, former head of the statistics department at the …

Double Whammy: China's already beleaguered banks may be pushed to play lifebuoy for realty in rags
1 year, 4 months 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 …

Crumbling buildings and broken dreams: China’s unfinished homes
1 year, 5 months ago

Crumbling buildings and broken dreams: China’s unfinished homes

Al Jazeera  

Tens of millions of homes lie vacant across China following the country’s credit-fuelled construction boom. “It is unfortunately happening all over China.” ‘Rotten-tail buildings’ Across China, from Guilin in southern China to Dalian in the north, countless home buyers have emptied their life savings into homes that never materialised. “This is a massive property crisis centring around a housing bubble …

Don’t rule out a financial crisis in China
1 year, 5 months ago

Don’t rule out a financial crisis in China

Live Mint  

The world’s second largest economy has a deflating property bubble, local governments struggling to pay their debts and a banking system heavily exposed to both. The problem isn’t with the central government but local governments that borrowed heavily via off balance-sheet financing vehicles to fund urban development projects. Logan Wright, director of China research at Rhodium Group, a research firm, …

Does China’s Property Bust Make a Financial Crisis Inevitable?
1 year, 5 months ago

Does China’s Property Bust Make a Financial Crisis Inevitable?

Live Mint  

When property markets go bust, banks often follow—most famously in the U.S. in 2008. Moreover, widespread financial turbulence can’t be ruled out—especially if housing and land prices fall too fast—or if Beijing doesn’t do more to support cash-strapped local governments and small lenders. Indirect exposure Unfortunately, banks’ seemingly manageable direct exposure to property is deceptive because of the housing market’s …

China stock investors say worst yet to come in property crisis
1 year, 6 months ago

China stock investors say worst yet to come in property crisis

Live Mint  

China’s property sector has yet to see the worst of the crisis that has cast a pall over the nation’s economy and helped drive an exodus of global funds from the world’s second-largest stock market. That’s the view from nine of 15 respondents in an informal Bloomberg News survey of analysts and money managers based in Hong Kong and mainland …

China’s economic growth target of 5% for 2023 at risk due to property crisis
1 year, 6 months ago

China’s economic growth target of 5% for 2023 at risk due to property crisis

Live Mint  

China will just about meet its economic growth target of around 5% for this year, the latest Bloomberg survey shows, although the ongoing property crisis is raising the risk of a miss. “The real estate sector will continue to be under mounting pressure” despite recent government efforts to support property, said analysts at Poseidon Partner, a Hong Kong-based investment firm. …

May not be a 'Chinese Century': How Xi Jinping's economic mismanagement can derail Beijing's big dreams
1 year, 6 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 …

China’s government tries to defuse economic fears after real estate developer’s debt struggle
1 year, 7 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 government tries to defuse economic fears after real estate developer's debt struggle
1 year, 7 months ago

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

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 Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy China’s government is trying to …

China's property meltdown is gathering pace — and it's bad news for Australia
1 year, 8 months ago

China's property meltdown is gathering pace — and it's bad news for Australia

ABC  

It is crunch time for Xi Jinping. ANZ's senior China economist Betty Wang reckons this is the longest downtrend ever in China's property sector and it persists despite significant government support rolled out in the aftermath of the Evergrande crisis. "In the current cycle, the government has announced several rounds of support measures for the sector since November 2021 following …

Six things to watch in China's economy
1 year, 8 months ago

Six things to watch in China's economy

China Daily  

Tourists visit a night market in Liuzhou, South China's Guangxi Zhuang autonomous region, April 29, 2023. Business expectations China's business confidence has largely improved this year. China has carried out a raft of measures to reassure entrepreneurs, including removing more barriers in market access, further reducing taxes and fees to save 1.8 trillion yuan for businesses this year, and boosting …

China extends real estate support policies
1 year, 8 months ago

China extends real estate support policies

China Daily  

Potential homebuyers look at a property model during an expo in Taizhou, Zhejiang province. China has extended two support measures for the real estate industry to support the healthy development of the sector, according to a joint statement by the People's Bank of China — the central bank — and the National Financial Regulatory Administration on Monday. Last November, Chinese …

Officials: China real estate recovering from debt crackdown
2 years 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 …

China's property sales static despite policies to stimulate market: Report
2 years, 1 month 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?
2 years, 2 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
2 years, 2 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 …

Policies to stabilize real estate financing
2 years, 4 months ago

Policies to stabilize real estate financing

China Daily  

Potential homebuyers look at a property model in Taiyuan, Shanxi province. China's latest policies will pump more liquidity into the economy to boost growth, improve real estate financing, stabilize market expectations and help shore up economic recovery in the coming months, industry experts said. Other measures include the central bank's move on Friday to cut the reserve requirement ratio for …

Explained | How bad is China’s property crisis and how did it get here?
2 years, 7 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 …

As China’s property crisis grows, is the global economy at risk?
2 years, 7 months ago

As China’s property crisis grows, is the global economy at risk?

Al Jazeera  

China’s house prices are falling as Beijing reins in sector, raising fears for economic growth at home and globally. With property accounting for 15-30 percent of China’s gross domestic product, the market’s woes spell trouble for the world’s second-largest economy – and potentially global growth as well. China’s property woes pose a substantial risk to its economy, which is already …

Pinched by housing downturn, Chinese families rein in spending
2 years, 7 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 …

The Chinese dream of homeownership is crumbling. The economy could go with it
2 years, 7 months ago

The Chinese dream of homeownership is crumbling. The economy could go with it

LA Times  

Last November, hundreds of angry homeowners in Nanchang, the capital of China’s Jiangxi province, gathered on the roof of an unfinished apartment building. And in China, unfortunately, the property sector is huge.” An exacerbated slowdown in China, a major commodities consumer and the world’s second-largest economy, would also have pronounced impact on the global financial system in its fragile state. …

China real estate crisis: Authorities to rescue property developers after homebuyers boycott mortgages
2 years, 7 months ago

China real estate crisis: Authorities to rescue property developers after homebuyers boycott mortgages

India TV News  

Highlights Authorities are promising as an initial rescue fund of $11.8B to offset crisis in real estate sector Home buyers announced they would stop mortgage payments until work resumed on unfinished projects Experts say the boycott is a byproduct of two decades of insufficient oversight China real estate crisis: Chinese authorities are promising to establish an initial rescue fund of …

Discover Related