bodyType

customContents

entityId

printArticlePageQuery

filter

article

body

urlAlias

articleSectionsContent

articleSeoArticle

articleSourceHeaderArticle

contentSchemaRenderContent

contentSubHeadlineContent

contentHeadlineContent

mainImagePrintArticleArticle

authorBlockPrintArticleArticle

contentSponsorTagContent

articlePianoPaywallContent

scmpYoutubeContent

hooksTrackPageViewArticle

query printArticlePageQuery(
  $entityId: String!
  $customContents: [CustomContentInput]
  $bodyType: BodyFormatTypeEnum
) {
  article(filter: {entityId: $entityId}) {
    entityId
    body(customContents: $customContents, type: $bodyType) {
      json
    }
    urlAlias
    ...articleSectionsContent
    ...articleSeoArticle_3o8td4
    ...articleSourceHeaderArticle
    ...contentSchemaRenderContent
    ...contentSubHeadlineContent
    ...contentHeadlineContent
    ...mainImagePrintArticleArticle
    ...authorBlockPrintArticleArticle
    ...contentSponsorTagContent
    ...articlePianoPaywallContent
    ...scmpYoutubeContent
    ...hooksTrackPageViewArticle
    id
  }
}

fragment articlePianoPaywallContent on Content {
  __isContent: __typename
  ...hooksPaywallPromiseContent
}

fragment articleSectionsContent on Content {
  __isContent: __typename
  sections {
    value {
      ...helpersCheckIfNewsSectionInFirstIndexSection
      ...entityLink
      name
      id
    }
  }
}

fragment articleSeoArticle_3o8td4 on Article {
  ...hooksArticleSeoArticle
  ...helpersCheckIsPostiesArticle
  ...helpersGetArticleTypeArticle
  entityId
  publishedDate
  updatedDate
  summary {
    text
  }
  subHeadline {
    text
  }
  body(customContents: $customContents, type: $bodyType) {
    text
  }
  keywords
  sections {
    value {
      name
      id
    }
  }
  topics {
    name
    entityId
    id
  }
  urlAlias
  authors {
    name
    id
  }
  images {
    style(filter: {style: "768x768"}) {
      url
    }
  }
  readingTime
}

fragment articleSourceHeaderArticle on Article {
  urlAlias
  ...entityLink
}

fragment authorBlockPrintArticleArticle on Article {
  ...defaultArticleDateContent
  ...authorNamesArticle
}

fragment authorNameAuthor on Author {
  ...entityLink
  name
  entityUuid
}

fragment authorNamesArticle on Article {
  authorLocations
  authors {
    entityId
    location
    ...authorNameAuthor
    id
  }
}

fragment blockquoteQuoteContent on Content {
  __isContent: __typename
  ...contentShareWidgetContent
}

fragment checkersCheckContentContainsStarlingImageContent on Content {
  __isContent: __typename
  topics {
    entityId
    id
  }
}

fragment contentHeadlineContent on Content {
  __isContent: __typename
  headline
  socialHeadline
  ...contentHeadlineTagContent
  ...helpersUseContentSponsorContent
}

fragment contentHeadlineTagContent on Content {
  __isContent: __typename
  ...hooksContentHeadlineTagContent
}

fragment contentNewsletterWidgetContent on Content {
  __isContent: __typename
  topics {
    relatedNewsletters {
      ...helpersMassageToNewsletterItemNewsletter
      id
    }
    id
  }
  sections {
    value {
      relatedNewsletters {
        ...helpersMassageToNewsletterItemNewsletter
        id
      }
      id
    }
  }
  ... on Article {
    relatedNewsletters {
      ...helpersMassageToNewsletterItemNewsletter
      id
    }
  }
}

fragment contentSchemaRenderContent on Content {
  __isContent: __typename
  ...blockquoteQuoteContent
  ...imageContent
  ...inlineWidgetContent
  ...photoGalleryWidgetContent
  ...scmpYoutubeContent
}

fragment contentShareWidgetContent on Content {
  __isContent: __typename
  entityId
  urlAlias
  shortUrl
  socialHeadline
  headline
}

fragment contentSponsorTagContent on Content {
  __isContent: __typename
  ...helpersUseContentSponsorContent
}

fragment contentSubHeadlineContent on Content {
  __isContent: __typename
  subHeadline {
    json
  }
  summary {
    json
  }
  ...contentSchemaRenderContent
}

fragment defaultArticleDateContent on Content {
  __isContent: __typename
  ...hooksArticleDateUtilsContent
}

fragment entityLink on BaseWithApplicationAndUrlAlias {
  __isBaseWithApplicationAndUrlAlias: __typename
  __typename
  entityId
  entityUuid
  urlAlias
  urlRedirect {
    toUrl
    id
  }
  application {
    entityId
    id
  }
  ... on Section {
    fullSectionPath {
      entityId
      id
    }
    parentSection
  }
  ...helpersAppBarVariantBase
  ...helpersApplicationBase
  ...helpersCheckIsPlusArticle
  ...helpersStyleSectionContent
}

fragment helpersAppBarVariantBase on BaseWithApplicationAndUrlAlias {
  __isBaseWithApplicationAndUrlAlias: __typename
  ...helpersCheckIsLiveArticle
  ...helpersCheckIsPlusPage
  ...helpersCheckIsPostiesArticle
  ...helpersCheckIsPostiesPage
  ...helpersCheckIsPostMagazineArticle
  ...helpersCheckIsStyleArticle
  ...helpersSectionContent
  ...helpersStyleSectionContent
}

fragment helpersApplicationBase on BaseWithApplicationAndUrlAlias {
  __isBaseWithApplicationAndUrlAlias: __typename
  ...helpersCheckIsPostiesArticle
  ...helpersCheckIsPostiesPage
  ...helpersCheckIsPlusPage
}

fragment helpersCheckIfNewsSectionInFirstIndexSection on Section {
  name
}

fragment helpersCheckIsAmpEnabledArticle on Article {
  entityId
  types {
    value {
      entityId
      id
    }
  }
  sections {
    value {
      entityId
      id
    }
  }
  disableOffPlatformContent
  sponsorType
  published
  ...helpersCheckIsPlusArticle
  ...helpersCheckIsPostiesArticle
}

fragment helpersCheckIsLiveArticle on Article {
  flattenTypeIds
  liveArticle {
    status
    id
  }
}

fragment helpersCheckIsMainTopicContent on Content {
  __isContent: __typename
  topics {
    entityId
    id
  }
}

fragment helpersCheckIsPlusArticle on Content {
  __isContent: __typename
  ... on Article {
    paywallTypes {
      entityUuid
      id
    }
  }
}

fragment helpersCheckIsPlusPage on Page {
  urlAlias
}

fragment helpersCheckIsPostMagazineArticle on Article {
  sections {
    value {
      entityId
      id
    }
  }
}

fragment helpersCheckIsPostiesArticle on Article {
  sections {
    value {
      entityId
      id
    }
  }
}

fragment helpersCheckIsPostiesPage on Page {
  urlAlias
}

fragment helpersCheckIsStyleArticle on Content {
  __isContent: __typename
  sections {
    value {
      entityId
      id
    }
  }
}

fragment helpersGetArticleTypeArticle on Content {
  __isContent: __typename
  ... on Article {
    types {
      value {
        entityId
        id
      }
    }
  }
}

fragment helpersMassageToNewsletterItemNewsletter on Newsletter {
  entityId
  name
  alternativeName
  description {
    text
  }
  summary {
    text
  }
  homepageDescription {
    text
  }
}

fragment helpersSanitizeArticleTypeEntityIdsArticle on Article {
  types {
    value {
      entityId
      id
    }
  }
}

fragment helpersSanitizeAuthorTypesArticle on Article {
  authors {
    types
    id
  }
}

fragment helpersSanitizedAuthorEntityIdsArticle on Article {
  authors {
    entityId
    id
  }
}

fragment helpersSectionContent on Section {
  fullSectionPath {
    entityId
    id
  }
}

fragment helpersStyleSectionContent on Section {
  fullSectionPath {
    entityId
    id
  }
}

fragment helpersUseContentSponsorContent on Content {
  __isContent: __typename
  topics {
    entityId
    sponsor {
      ...sponsorTagSponsor
      name
      type
      id
    }
    id
  }
  ... on Article {
    sponsorType
  }
  ...helpersCheckIsMainTopicContent
}

fragment hooksArticleDateUtilsContent on Content {
  __isContent: __typename
  createdDate
  publishedDate
  updatedDate
}

fragment hooksArticleSeoArticle on Article {
  ...helpersCheckIsPostiesArticle
  ...helpersCheckIsPostMagazineArticle
  ...helpersCheckIsStyleArticle
  ...hooksContentHeadlineTagContent
  ...helpersCheckIsAmpEnabledArticle
  entityId
  headline
  socialHeadline
  types {
    value {
      entityId
      id
    }
  }
  authors {
    entityId
    id
  }
  images {
    generic_og: style(filter: {style: "og_image_scmp_generic"}) {
      url
    }
    styles(filter: {styles: ["og_image_posties_article", "og_postmag", "og_image_style", "og_image_scmp_analysis", "og_image_scmp_explainer", "og_image_scmp_editorial", "og_image_scmp_fact_check", "og_image_scmp_debate", "og_image_scmp_live", "og_image_scmp_obituary", "og_image_scmp_opinion", "og_image_scmp_review", "og_image_scmp_series", "og_image_scmp_generic"]}) {
      url
      style
    }
    type
  }
  urlAlias
}

fragment hooksContentHeadlineTagContent on Content {
  __isContent: __typename
  __typename
  ... on Article {
    types {
      value {
        name
        entityId
        description {
          text
        }
        id
      }
    }
    ...helpersCheckIsStyleArticle
  }
  flag
  sections {
    value {
      name
      id
    }
  }
  ...hooksContentHelperContent
}

fragment hooksContentHelperContent on Content {
  __isContent: __typename
  ...helpersSanitizeArticleTypeEntityIdsArticle
  ...helpersSanitizeAuthorTypesArticle
  ...helpersSanitizedAuthorEntityIdsArticle
  flag
}

fragment hooksPaywallPromiseContent on Content {
  __isContent: __typename
  entityId
  ...helpersCheckIsPostiesArticle
}

fragment hooksTrackPageViewArticle on Article {
  entityId
  publishedDate
  headline
  sections {
    value {
      name
      id
    }
  }
  urlAlias
  authors {
    name
    id
  }
  entityUuid
}

fragment imageContent on Content {
  __isContent: __typename
  headline
  ...checkersCheckContentContainsStarlingImageContent
}

fragment inlineWidgetContent on Content {
  __isContent: __typename
  ...contentNewsletterWidgetContent
}

fragment mainImagePrintArticleArticle on Article {
  images {
    title
    url
    isSlideshow
    size_652x446: style(filter: {style: "652x446"}) {
      url
    }
  }
}

fragment photoGalleryDialogContent on Content {
  __isContent: __typename
  __typename
  ...contentShareWidgetContent
}

fragment photoGalleryWidgetContent on Content {
  __isContent: __typename
  ...photoGalleryDialogContent
}

fragment scmpYoutubeContent on Content {
  __isContent: __typename
  entityId
  urlAlias
  publishedDate
}

fragment sponsorTagSponsor on Sponsor {
  name
  type
  images {
    url
  }
}


sections

types

disableOffPlatformContent

sponsorType

published

headline

socialHeadline

authors

images

publishedDate

updatedDate

summary

subHeadline

keywords

topics

readingTime

authorLocations

entityUuid

Pearl Liu

Lily Gao, a designer in an architectural firm in Shanghai, never thought that the news about defaulting property developers and mortgage boycotts would affect her life.
“I thought that since I did not even buy a home or invest in any of the wealth management products, those news stories were just other people’s desperate stories,” the 27-year-old said. “Apparently, I was too naive.”
Now, the distressed property market could end up costing Gao about 90,000 yuan (US$13,000).
“We were told that our bonus this year could get delayed or cancelled if the receivables cannot be settled,” the designer said with disappointment.

Losing the bonus, which usually accounts for 30 per cent of Gao’s total compensation, would force her to call off her plan to buy a car.
Gao’s situation illustrates how, as property developers struggle to keep their heads above water, they create waves that upset personal plans – and corporate profit expectations – throughout the property ecosystem and beyond.
For example, leading US-based lift maker Otis Worldwide saw its sales in China plunge 11.5 per cent year over year in the second quarter, dragging its net sales down by 5.8 per cent – its worst quarterly performance since going public in 2020.


While Otis management cited China’s on-and-off Covid-19 lockdowns for the drop, analysts are more concerned about a lasting slowdown, because “housing inventory levels are alarmingly high and sales of new floor space are cratering”, as analyst Joel Spungin of Berenberg Capital Markets put it on an earnings call recently.
While foreign firms have other markets to rely on, the situation is worse for home-grown suppliers, including construction companies that are tightly locked to home building, cement manufacturers, design houses and furniture retailers.
Two-thirds of the major listed companies in these sectors reported falling profits in the first six months of the year, compared to the previous year, with half of them swinging from profit to loss.




Topping the victim list is Shenzhen-listed construction company Grandland Group, which relies on China Evergrande Group for 40 per cent of its sales. The company, which specialises in architectural decoration and building curtain walls, was among the most successful of its kind by market value before the property crisis.
In the first half of 2022, it booked a 236 million yuan net loss attributable to equity holders, excluding non-recurring costs, after a profit of 44 million yuan a year earlier.
“Our company has been suffering a liquidity crisis as we are having difficulties collecting receivables amid defaults at our biggest client, China Evergrande,” the company said in an interim result filing. “Meanwhile, amid the continuing fluctuations of the country’s real estate market, our new contracts have dropped sharply.”
Crippled by its close ties to China Evergrande – once China’s biggest developer by sales and now the biggest by debts – Grandland received a restructuring petition from a lender in May and agreed to enter a restructuring procedure to resolve its debts in August.
The market may see more such stories of deterioration, as the country’s real estate industry shows no sign of recovery.
Plunging profits leave China’s home builders short of cash to service debt
More than 20 major developers have defaulted on their unmanageable debts in the last year, while a public mortgage boycott that started in mid July has not helped the bruised sector.
“The worst part of this housing crisis is that it is still evolving, as there are so many businesses in the supply chain,” said Yan Yuejin, director of Shanghai-based E-house China Research and Development Institute. “Until we see things restored to order, including land sales, new project launches and home sales, more companies will struggle.”
Beijing Oriental Yuhong Waterproof Technology, once a sweetheart of some international investors including Fidelity and Allianz, also red-flagged possible challenges due to property market woes in a recent interim report.
“In the future, the company’s operation could be impacted by the downward pressure of China’s economic development [and] the macro control of the real estate industry,” the construction material company said after reporting a net profit decline of 38 per cent in the first six months of 2022.
In comparison, it posted a 40 per cent increase in the first half of 2021, before the housing sector collapse.
Will China’s housing market go Japan’s way before the bubble bursts?
Real estate and related activities, such as construction, account for about 29 per cent of China’s gross domestic product (GDP), comparable to the entire economy of Spain or Ireland before the global financial crisis, according to Kenneth Rogoff, an American economist and Harvard University professor.
As a result, a 20 per cent decline in real estate activity in China could lead to a 5 to 10 per cent drop in GDP, even without being amplified by a potential banking crisis, he said in a research paper last year.
“The demand of downstream clients has decreased sharply,” said Shenzhen-listed Guangdong Kinlong Hardware Products in its half-year report, as it logged a loss of 83 million yuan between January and June, following profits of 380.5 million yuan and 226.5 million yuan in the first six months of 2021 and 2020, respectively.
“If the property investment growth continues to drop, the company will continue to suffer from the negative impact,” said the company, which specialises in hardware for doors and windows of houses.
Aside from profits, the jobs of individuals like Gao are also in danger.
Savers at risk as China’s small banks face ‘perfect storm’
At the end of 2020, real estate and construction jobs accounted for about 16 per cent of urban employment at non-private companies, such as state-owned enterprises and publicly listed companies, according to the National Bureau of Statistics.
“I posted a complaint on social media and some young people in other design houses sent me messages sharing their own stories of salary cuts and even lay-offs to comfort me,” said Gao. “How can I complain further? At least, I still have a job.”


China property developers’ struggles make waves that threaten to swamp upstream and downstream suppliers

Residential buildings under construction in Shanghai. Photo: Reuters

China Evergrande’s residential buildings under construction in Guangzhou. Photo: AFP

Business

Property

China Business

Companies

Mutual Funds

Two-thirds of major listed companies in closely tied sectors such as construction reported falling first-half profits, with half swinging from profit to loss
Cement manufacturers, design houses and furniture retailers also among firms taking on water


Two-thirds of major listed companies in closely aligned sectors such as construction reported falling first-half profits, with half swinging from profit to loss.


China property developers’ struggles make waves that threaten to swamp upstream and downstream suppliers

Two-thirds of major listed companies in closely tied sectors such as construction reported falling first-half profits, with half swinging from profit to loss Cement manufacturers, design houses and furniture retailers also among firms taking on water

Two-thirds of major listed companies in closely tied sectors such as construction reported falling first-half profits, with half swinging from profit to loss

Cement manufacturers, design houses and furniture retailers also among firms taking on water