China’s residential property market is responsible for an estimated 16 per cent of the nation’s economic activity. Photo: AFP
China’s residential property market is responsible for an estimated 16 per cent of the nation’s economic activity. Photo: AFP

China property crisis: plunging profits leave developers struggling to generate enough cash to service their loans

  • Total cash on hand shrank by 13.8 per cent among 32 developers tracked by UOB, hurting their ability to service their debt
  • Without supportive policy changes or a sudden shift in confidence in the market, more defaults are likely, analyst warns

China’s residential property market is responsible for an estimated 16 per cent of the nation’s economic activity. Photo: AFP
China’s residential property market is responsible for an estimated 16 per cent of the nation’s economic activity. Photo: AFP
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