A vehicle travels past some of the 39 buildings developed by China Evergrande Group for which authorities have issued demolition orders in Danzhou, Hainan province, on January 6. Beijing has pledged to ease pressure on the stricken residential property sector by reducing risks faced by developers, but concerns remain that the move is too little, too late. Photo: Reuters
Opinion
Opinion
The View
China’s stricken housing market needs a bazooka, not a slingshot, of regulatory easing to recover
- While stocks responded strongly to a flurry of assurances by Beijing, the pledges are still vague and need to be backed up by concrete measures
- There are still no clear signs that regulators are lifting restrictions on developers’ access to cash from pre-sold homes, a key source of liquidity
A vehicle travels past some of the 39 buildings developed by China Evergrande Group for which authorities have issued demolition orders in Danzhou, Hainan province, on January 6. Beijing has pledged to ease pressure on the stricken residential property sector by reducing risks faced by developers, but concerns remain that the move is too little, too late. Photo: Reuters
