As Real Estate Firms Battle Debt, Business-Starved State Builders Fill the Vacuum

Chinese state construction giants are increasingly buying and developing land themselves as demand for third-party contractors from debt-laden property companies diminishes.

Four construction firms owned by China State Construction Engineering Corp. Ltd. (601668.SH) bought 34.7 billion yuan ($4.8 billion) in land, mostly in Beijing and Shanghai, during the first three quarters of 2022, according to data compiled by property consultancy China Index Academy (CIA). Last year, only one of the largest state-owned construction contractor’s subsidiaries bought land, valued at 9.6 billion yuan.