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China propertyi

China’s property market has surged in recent years. After prices jumped 25 per cent in 2009 alone, the central government imposed austerity measures, including lending curbs, higher mortgage rates and restrictions on the number of homes each family can buy.

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  • Losses are likely to be between 20 billion yuan (US$2.8 billion) and 23 billion yuan for 2023, versus a 19 billion yuan deficit in 2022
  • Home sales fell 76 per cent in the first two months this year, after suffering a 50 per cent slump in 2023, according to company data
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The cuts are part of a broader cost-reduction programme launched globally this month, which is expected to save US$125 million and make 9 per cent of its workforce redundant.

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Evergrande, which has the dubious honour of being the world’s most indebted developer with US$332 billion of liabilities, stands accused of inflating its revenue by 564 billion yuan (US$78 billion) preceding its collapse.

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Private credit lenders are capitalising on businesses’ thirst for generating liquidity from their property assets in Hong Kong, banking on the city’s sound legal system.

Analysts expect China’s economic recovery to continue over the coming months thanks to the increase in policy support following the release of combined data for January and February on Monday.

China’s manufacturing and consumption gradually rebounded in the first two months of the year, and investment growth and industrial output beat market expectations, but the property market continued to drag.

Fosun Tourism Group, the leisure and tourism unit of Chinese conglomerate Fosun International, is courting both domestic and international investors in a move that is in line with its asset-light strategy.

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New home prices fell again in February, despite a slew of measures to prop up the market. While more easing measures can be expected, an ‘L-shaped’ recovery is likely in the coming years given weak fundamentals, Goldman says.

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The local government in Hangzhou has taken another drastic move to ease home-purchase restrictions, after an effort last year failed to sustain a rebound in the housing market.

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Beijing has urged higher efficiency in land use after decades of rapid urbanisation, with signals that it could reform China’s rigid system to aid economic growth.

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Country Garden is trying its best to pay a 96 million yuan (US$13.3 million) bond coupon within a 30-day grace period, the Chinese developer says in a reply to the Post.

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The impact of Monday’s downgrade is ‘controllable’, the second-largest Chinese developer says. Its shares rose more than 10 per cent to HK$6.30 on Tuesday on belief commercial banks will raise up to US$11.1 billion to repay its debts.

‘China faces considerable domestic challenges, from a sluggish property market to weak consumer sentiment, Wharf says. After a poor result in 2023, more time is needed to revive the property markets, it says.

As China faces numerous questions over its economic viability in the long term, some are advocating for a removal of barriers to rural land trading to jolt growth back to previous heights.

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The international ratings agency has stripped state-backed property giant China Vanke of its investment-grade credit rating amid concerns over its liquidity and ability to access funding amid declining sales.

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The State Council is coordinating efforts related to supporting China Vanke, according to sources. Any debt repayment troubles at Vanke could further dampen market confidence, analysts say.

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China’s housing market is still plagued by excess supply of used homes as desperate owners look to cash out amid an economic gloom. Prices may need to drop further, with buyers waiting for bigger discounts, analysts say.

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Shanghai’s housing market looks set to continue its downward slide due to a lack of buying interest, as would-be buyers wary of a gloomy economic outlook continue to feel uneasy about the current high property prices.

Chinese investors sold US$31.7 billion of US commercial real estate between 2019 and last year, 15 times more than what they acquired during the same period, according to MSCI Real Assets.

One of China’s most indebted provinces has brilliant bridges and vast roads, but also one of the nation’s worst per capita income levels, along with debt pressure that could weigh down the region for years.

Fosun Tourism Group, the leisure and tourism unit of Fosun International, said on Wednesday that it is “financially sound”, amid reports that its parent firm is mulling the sale of a stake in the luxury resort to cope with debt.

The country’s second-largest developer has assured investors it has the funds in place to repay its outstanding offshore debts coming due soon, as its shares and bonds tumbled amid rumours about liquidity distress.

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Some of China’s largest insurers are sounding the alarm over the debt risks of China Vanke, according to people familiar with the matter, as shares and bonds of the firm hit record lows on repayment concerns.

Amid a sluggish second-hand home market where supply outweighs demand and prices are slumping to fresh lows, many homeowners in China are taking to social media to sell their property in the hopes of finding a buyer more quickly and securing a better deal.

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Property sales in mainland China posted another month of declines in February with demand remaining weak due to uncertainties in income expectations and volatility in the market