More Developers Face Debt Threats as Sales Continue Falling, S&P Says

Slowing sales and tight financing continue to exert pressure on China's real estate companies regardless of ownership, S&P Global (China) Ratings said in a recent report, warning that more developers will face a debt crisis if the sales slump persists.

S&P predicts a 5% drop in the value of China’s nationwide new home sales in 2024. After conducting stress tests on 18 developers, it said that a greater decline would lead to significant weakening in the ability of developers to meet debt repayments.