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 Under a popular way of buying property in China, called “pre-sales”, buyers pay for the property before it is built. According to China Real Estate Information Corporation, combined contract sales fell by 39 per cent from last year. Notably, by late last year, 20 of China’s top 30 property firms by sales had breached at least one of three debt red lines set down by the Beijing government to rein in real estate speculation, according to Bloomberg News.

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History of this topic

China Property Flare-Ups Resurface as Crisis Enters Fifth Year
2 days, 18 hours 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 …

November blues: Retail slump, property woes show China’s economy not responding to Xi’s push
1 week, 1 day ago

November blues: Retail slump, property woes show China’s economy not responding to Xi’s push

Firstpost  

China’s economy in November has sparked concerns about its ability to boost domestic demand in a world full of uncertainties. Reports from the South China Morning Post and The Economic Times highlight mixed results in key areas like retail sales, property investments and industrial output. The South China Morning Post noted that while November’s retail figures seemed weak, combining data …

Targeted incremental policies boosting growth
2 weeks, 5 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, 5 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 prepares to retaliate against potential trade war with Donald Trump
1 month, 1 week ago

China prepares to retaliate against potential trade war with Donald Trump

Firstpost  

China is reportedly preparing to counter potential US tariffs, setting the stage for an economic tit-for-tat that could further strain relations. China is preparing for potential retaliation against new tariffs if Donald Trump restarts the trade war upon his return to the Oval Office next year. China will strike back in the first rounds of another Trump trade war to …

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 …

China has been plunged into a major financial crisis - this is how it could damage the investments in YOUR pension or Isa: JOHN-PAUL FORD ROJAS
1 month, 3 weeks ago

China has been plunged into a major financial crisis - this is how it could damage the investments in YOUR pension or Isa: JOHN-PAUL FORD ROJAS

Daily Mail  

China is in a major economic crisis - perhaps the most serious since it set out on its dizzying trajectory of economic growth more than four decades ago. The People's Bank of China is taking action against a screeching slowdown in economic growth by cutting interest rates and offering more support to banks and the housing sector 'It is fair …

Here’s How Bad China’s Economy Really Is. Can It Be Fixed?
2 months, 1 week ago

Here’s How Bad China’s Economy Really Is. Can It Be Fixed?

Bloomberg  

China’s economic growth target of 5% this year is looking ambitious, given sluggish consumer spending, an uncertain outlook for the country’s exports and a still shaky property market. Fewer than a fifth of economists surveyed by Bloomberg Terminal Bloomberg were predicting gross domestic product would expand by 5% in 2024, as analysts at lenders such as Bank of America Corp. …

China exploring reforms in housing sales system to revitalize property sector
3 months, 3 weeks ago

China exploring reforms in housing sales system to revitalize property sector

China Daily  

Potential homebuyers look at property models in Huaian, Jiangsu province. BEIJING - China is pursuing reforms in its housing sales system with a shift from the traditional pre-sales practice -- homes being sold before construction is complete -- as part of a broader effort to steer the property sector to a healthy and sustainable path. "We will strongly and orderly …

China’s economy fails to pick up after worst stretch in five quarters
4 months, 1 week ago

China’s economy fails to pick up after worst stretch in five quarters

Hindustan Times  

China’s weakening economic momentum failed to pick up as sluggish confidence weighs on consumption and investment, putting the government’s annual growth target at risk. “It tells us that maybe one day, the weakness in the demand-side will return to bite the other side.” The latest snapshot of the $17 trillion economy shows domestic demand is barely benefiting from recent government …

China's property market shows signs of warming despite price drop
4 months, 1 week ago

China's property market shows signs of warming despite price drop

China Daily  

A realty agent introduces a residential property model to a potential homebuyer in Hai'an, Jiangsu province. XU JINBAI/FOR CHINA DAILY BEIJING - Major Chinese cities saw home prices fall in July compared to the previous month, though the declines continued to narrow, aided by favorable policies, according to data from the National Bureau of Statistics released on Thursday. While those …

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’s leaders vow to fight ‘risks’ plaguing economy
5 months ago

China’s leaders vow to fight ‘risks’ plaguing economy

The Hindu  

Beijing's leaders vowed on July 18 to resolve "risks" plaguing China's economy, but were yet to offer any concrete steps to pull the country out of its financial woes. ‘Market failures’ But Hoo Tiang Boon at Nanyang Technological University in Singapore told AFP the statement "acknowledges certain risks and obstacles to the Chinese economy". With the country facing those headwinds, …

China’s rich spend millions on Shanghai property; Luxury apartments worth $3.8 million five times oversubscribed
5 months, 4 weeks 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’s biggest cities continue to ease home-buying policies
6 months, 3 weeks ago

China’s biggest cities continue to ease home-buying policies

Live Mint  

More of China’s biggest cities are easing home-buying policies, after top leaders recently signaled a shift to aggressive measures to resolve the country’s ongoing property crisis. “This policy easing reflect local governments’ echoing of central government and regulators’ rhetoric on May 17,” Morningstar analyst Jeff Zhang said, referring to a meeting of China’s top financial regulators that removed mortgage-rate floors …

Key move at critical moment for property market
7 months ago

Key move at critical moment for property market

China Daily  

Residential buildings pictured in Changsha, Central China's Hunan province on May 9, 2021. On Friday, the People's Bank of China issued several important new real estate policies, including reducing the down payment ratio for home purchases to 15 percent, lowering the interest rates for provident fund loans and mortgages, and providing loans to local governments to buy unsold apartments for …

Key move at critical moment for property market
7 months ago

Key move at critical moment for property market

China Daily  

Residential buildings pictured in Changsha, Central China's Hunan province on May 9, 2021. On Friday, the People's Bank of China issued several important new real estate policies, including reducing the down payment ratio for home purchases to 15 percent, lowering the interest rates for provident fund loans and mortgages, and providing loans to local governments to buy unsold apartments for …

China unveils 'historic' steps to stabilise crisis-hit real estate sector
7 months, 1 week 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
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 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 …

New real-estate development mode key to solving housing market woes
9 months, 1 week ago

New real-estate development mode key to solving housing market woes

China Daily  

A salesman introduces a residential project to potential homebuyers in Taiyuan, Shanxi province. The policies recently announced by the top authorities indicate that the country will strive to seek breakthroughs by stabilizing the market, preventing risks and promoting transformation, while actively building a new mode of real estate development. Although the task of stabilizing the real estate market is still …

Order to liquidate property giant China Evergrande is just one step in fixing China’s debt crisis
10 months, 3 weeks 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 …

Desperate Chinese property developers resort to bizarre marketing tactics
11 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 …

Chinese President Xi Jinping says economic recovery ‘still at critical stage’
1 year ago

Chinese President Xi Jinping says economic recovery ‘still at critical stage’

The Hindu  

President Xi Jinping said that China’s economic recovery is “still at a critical stage”, state broadcaster CCTV reported on December 8, as sluggish domestic activity and property sector woes drag on a post-pandemic rebound. “At present, the country’s economic recovery is still at a critical stage,” Mr. Xi said at a meeting of China’s Communist Party Politburo, the country’s top …

Housing woes: There's no comparison between China, Japan
1 year ago

Housing woes: There's no comparison between China, Japan

China Daily  

Potential homebuyers look at a property model in Huai'an, Jiangsu province. So, the popular "balance sheet recession "theory, which is applicable to some developed countries and can provide some reference for China, may not work well in finding solutions to China's current economic situation. Besides, Japan's housing bubble mainly covered six major metropolitan areas and was concentrated in commercial real …

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, …

How a 'sharp deterioration' in China's property market and potential collapse of Evergrande could affect Australia's economy
1 year, 2 months ago

How a 'sharp deterioration' in China's property market and potential collapse of Evergrande could affect Australia's economy

ABC  

China's property market is facing a "sharp deterioration" which could lead to financial stress domestically, and ultimately affect its trade with Australia. Key points: Evergrande is facing liquidation proceedings on October 30 Police have detained its chairman and founder Hui Ka Yan The company has been blocked from raising new debt to fund its survival That is one of the …

China stock investors say worst yet to come in property crisis
1 year, 2 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, 2 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. …

Chief China economists speak on China's economic recovery
1 year, 2 months ago

Chief China economists speak on China's economic recovery

China Daily  

Xiong Yi, Deutsche Bank's chief China economist. Q: With recent measures to address the property market downturn and boost confidence in the capital market and the private economy, what's your outlook for the Chinese economy for the rest of the year and 2024? To achieve moderate growth pace, or even potentially higher growth, China needs to provide sufficient countercyclical policy …

Jinping’s housing crisis efforts jeopardized as Evergrande face trouble
1 year, 2 months ago

Jinping’s housing crisis efforts jeopardized as Evergrande face trouble

Live Mint  

Fresh drama at Chinese property developers jeopardizes President Xi Jinping's efforts to end the housing crisis, as Evergrande revisits its debt restructuring plan, China Oceanwide faces liquidation, and Country Garden tries to avoid a potential default. China Evergrande Group shares slid for a second consecutive session on Tuesday, dropping as much as 8% after a unit of the embattled property …

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 property giant Evergrande files for bankruptcy, Country Garden looking at USD 7.6 billion loss
1 year, 4 months ago

China's property giant Evergrande files for bankruptcy, Country Garden looking at USD 7.6 billion loss

Op India  

The property crisis in China, which has led to billions of dollars flowing out of the country, is not just Beijing’s own making but has also exposed the ‘reality’ of Beijing’s property boom, the New York Times reported. More than 50 Chinese property developers have defaulted or failed to make debt payments in the last three years, NYT reported citing …

What does China Evergrande’s debt restructuring entail?
1 year, 4 months ago

What does China Evergrande’s debt restructuring entail?

Live Mint  

China Evergrande Group has filed for protection from creditors in a US bankruptcy court as part of its debt restructuring process, amid rising concerns over China’s worsening property crisis and a weakening economy. Evergrande's debt restructuring In March, the Evergrande group announced an offshore debt restructuring, expecting it to facilitate a gradual resumption of operations and generation of cash flow. …

Explained: Why China's economic meltdown is making the world nervous
1 year, 4 months ago

Explained: Why China's economic meltdown is making the world nervous

India Today  

China, the world's second-largest economy, is going through a tough time. For starters, China is a dominant global player across most global sectors, with the International Monetary Fund's latest World Economic Outlook predicting the country to contribute over 22 per cent of the global gross domestic product. Therefore, a decline in China's economic activity can severely throw off the global …

China's property meltdown is gathering pace — and it's bad news for Australia
1 year, 4 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 …

Top Chinese leaders say economy 'facing new difficulties'
1 year, 5 months ago

Top Chinese leaders say economy 'facing new difficulties'

The Hindu  

China's top leaders said the economy was facing "new difficulties and challenges" in a meeting of the 24-person Politburo on Monday. "The meeting pointed out that the current economic operation is facing new difficulties and challenges, mainly due to insufficient domestic demand, operational difficulties for some enterprises, high risks and hidden dangers in key areas, and a complex and severe …

Six things to watch in China's economy
1 year, 5 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's new home sales sees sharp rise in March: Survey
1 year, 8 months ago

China's new home sales sees sharp rise in March: Survey

Hindustan Times  

China's new home sales rose sharply in March, as a slew of support policies boosted a pickup in demand across the board in 14 surveyed cities, a private survey showed on Monday. The sales of new homes rose 55.7% month-on-month, up from growth of 31.9% in February, according to data from the China Index Academy — one of the country's …

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 …

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 economy plunged before major Covid policy shift. A rebound may be months away
2 years ago

China’s economy plunged before major Covid policy shift. A rebound may be months away

CNN  

Hong Kong CNN — The end of pandemic restrictions in China will eventually usher in a strong economic rebound as the country learns to live with the Covid virus, according to economists, even as a slew of data showed business activity plummeting in November. “We reckon that the incoming migration around the Chinese New Year holiday in late January could …

As China’s property crisis grows, is the global economy at risk?
2 years, 3 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, 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 …

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