• Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans

Subscribe to Updates

Get the latest finance news and updates directly to your inbox.

Top News

7 of the Worst Things to Eat (and Drink) for Your Blood Pressure

August 18, 2025

Don’t Overlook These Essentials When Investing Overseas

August 18, 2025

OpenAI’s New Agent Just Changed the Rules — Here’s How Solopreneurs Are Turning it Into Profit

August 17, 2025
Facebook Twitter Instagram
Trending
  • 7 of the Worst Things to Eat (and Drink) for Your Blood Pressure
  • Don’t Overlook These Essentials When Investing Overseas
  • OpenAI’s New Agent Just Changed the Rules — Here’s How Solopreneurs Are Turning it Into Profit
  • Strengthen While You Strategize with This Balance Board Bundle
  • Stay One Step Ahead of Cyber Threats for Five Years for $35
  • Why You Should Coach Your Financial Advisor Like An NFL Roster
  • 11 Overlooked Ways to Turn Table Scraps Into Delicious Meals
  • 6 Low-Stress Side Hustles for Soon-to-Be Retirees
Monday, August 18
Facebook Twitter Instagram
FintechoPro
Subscribe For Alerts
  • Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans
FintechoPro
Home » China’s property sector needs more government support as crisis deepens
News

China’s property sector needs more government support as crisis deepens

News RoomBy News RoomNovember 21, 20230 Views0
Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Email Tumblr Telegram

BEIJING — China’s property market, which makes up a substantial chunk of the country’s economy, needs more government support to prevent it from deteriorating further, analysts said.

Existing home prices fell in October by the most since 2014, while outstanding property loans fell for the first time in history, Larry Hu, chief economist at Macquarie, said in a note Friday.

That indicates increased drags on both the demand and the supply side.

Policy so far has focused on boosting demand. But the government hasn’t “addressed the most important issue: credit risk related to developers,” according to a Macquarie report.

“Without a lender of last resort, a self-fulfilled confidence crisis could easily happen as falling sales and rising default risks reinforce each other,” the report said. “Indeed, some large developers have recently seen their credit risks rising rapidly.”

Beijing has sought to reduce real estate developers’ high reliance on debt to fuel growth, while tamping down on a surge in home prices that has made buying an apartment in major cities prohibitively expensive for many young Chinese households.

UBS analysts estimated that real estate and related sectors now account for about 22% of China’s gross domestic product, down from around 25% levels seen in recent years.

Since November 2022, Chinese authorities have rolled out a raft of measures aimed at improving developers’ access to financing and reducing mortgage rates.

Read more about China from CNBC Pro

Markets ‘too optimistic’?

Recent figures indicate that property sector troubles are only worsening.

The average price for existing homes across 70 major cities fell by 0.6% in October from the prior month, compared with a 0.5% drop in September, with China’s largest cities leading declines, Nomura analysts said in a report last week citing official data.

That’s concerning since larger cities are expected to have a more sustained demand for homes due to the availability of jobs.

“China’s property sector has yet to bottom out,” the report said. “Markets appear to have been a bit too optimistic about the property stimulus policies over the past two months.”

Chinese property giant Evergrande has a huge debt problem – here's why you should care

More high-level signals

Policymakers in the last few days have made an effort to signal more support.

The People’s Bank of China late Friday announced it held a meeting with other financial regulators to allow lending to real estate developers that are “operating normally”, among other signals of support. The authorities also called for developing affordable housing, according to the readout.

“The meeting should help avoid an undesirable contraction of credit extension in the final two months of the year, as financial institutions try to time new loan deals to the new year to engineer a strong start,” Citi analysts said in a report Monday.

“The continued emphasis on supporting real estate financing and LGFV debt resolution will continue [to help] prevent risks [from] escalating,” the report said. “As fragile growth continues to call for an accommodative monetary environment, the meeting is moving along the needed direction while more supports are still needed to boost private sentiment.”

Shares of several major property companies closed higher on Monday, with developer Sunac rising 5.9% in Hong Kong trading.

Read the full article here

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Articles

RSS Feed Generator, Create RSS feeds from URL

News November 22, 2024

X CEO Linda Yaccarino addresses Musk’s ‘go f—- yourself’ comment to advertisers

News November 30, 2023

67-year-old who left the U.S. for Mexico: I’m happily retired—but I ‘really regret’ doing these 3 things in my 20s

News November 30, 2023

U.S. GDP grew at a 5.2% rate in the third quarter, even stronger than first indicated

News November 29, 2023

Americans are ‘doom spending’ — here’s why that’s a problem

News November 29, 2023

Jim Cramer’s top 10 things to watch in the stock market Tuesday

News November 28, 2023
Add A Comment

Leave A Reply Cancel Reply

Demo
Top News

Don’t Overlook These Essentials When Investing Overseas

August 18, 20250 Views

OpenAI’s New Agent Just Changed the Rules — Here’s How Solopreneurs Are Turning it Into Profit

August 17, 20250 Views

Strengthen While You Strategize with This Balance Board Bundle

August 17, 20250 Views

Stay One Step Ahead of Cyber Threats for Five Years for $35

August 17, 20250 Views
Don't Miss

Why You Should Coach Your Financial Advisor Like An NFL Roster

By News RoomAugust 17, 2025

In the NFL, even the best players have to earn their spot every season —…

11 Overlooked Ways to Turn Table Scraps Into Delicious Meals

August 17, 2025

6 Low-Stress Side Hustles for Soon-to-Be Retirees

August 17, 2025

Get a Social Media and Marketing Education with This $35 Bundle

August 16, 2025
Facebook Twitter Instagram Pinterest Dribbble
  • Privacy Policy
  • Terms of use
  • Press Release
  • Advertise
  • Contact
© 2025 FintechoPro. All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.