Caixin
Mar 16, 2022 07:40 PM
BUSINESS

In Depth: Market Realities Frustrate China’s Efforts to Clean Up Developer Debt

Since the market was clobbered by a cash crunch late last year, authorities have encouraged healthy real estate companies to buy the assets of their distressed peers. Photo: VCG
Since the market was clobbered by a cash crunch late last year, authorities have encouraged healthy real estate companies to buy the assets of their distressed peers. Photo: VCG

Over the past two months, Sunac China Holdings Ltd. and Shimao Property Holdings Ltd., two debt-ridden Chinese private developers, have sold projects worth billions of yuan to state-owned firms.

That marks a sharp reversal from 2018 to 2019 when the two companies went on a shopping spree spending tens of billions of yuan to expand their businesses.

How times have changed. China’s real estate industry — once a breeding ground for new billionaires — has degenerated into a minefield of murky debt risk that threatens its status as a pillar of economic growth.

You've accessed an article available only to subscribers
VIEW OPTIONS
Share this article
Open WeChat and scan the QR code
NEWSLETTERS
Get our CX Daily, weekly Must-Read and China Green Bulletin newsletters delivered free to your inbox, bringing you China's top headlines.

We ‘ve added you to our subscriber list.

Manage subscription