Distressed Assets Dominate Shenzhen’s Big Property Deals

Foreclosed properties and distressed assets made up the majority of large commercial real estate transactions in Shenzhen in the first half of 2026, as banks, asset managers and state-owned enterprises accelerated efforts to liquidate holdings.

The rise in distressed sales highlights the continuing fallout from China’s prolonged property liquidity crisis, which has forced creditors to offer steep discounts to recover funds and resolve debt in a weak market.