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China Is Finally Trying to Fix Its Housing Crisis
More than a year after one of China’s biggest real estate developers began to collapse, trouble has rippled through cities across the country. Dozens of other developers have also missed debt payments, the sale of new homes has plunged and construction cranes have come to a standstill at many sites. This week the Chinese government, which until now has stayed largely on the sidelines of the country’s housing crash, has taken its most forceful steps so far to try to minimize the damage from the turmoil that has enveloped China Evergrande Group, the world’s most heavily indebted developer, and many of its competitors. Real estate development plays an outsize role…
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China’s real estate crisis could be over with new rescue plan. Property stocks are soaring
Hong Kong CNN Business — Chinese authorities are making their biggest effort yet to end a crisis in the country’s vast real estate sector that has weighed heavily on the economy over the past year. Shares of China’s biggest property developer Country Garden soared as much as 52% in Hong Kong after Beijing on Friday unveiled a 16-point plan that significantly eases a crackdown on lending to the sector. Key measures include allowing banks to extend maturing loans to developers, supporting property sales by reducing the size of down payments and cutting mortgage rates, boosting other funding channels such as bond issues, and ensuring the delivery of pre-sold homes to…
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Why is there a real estate crisis unfolding in China?
China’s real estate sector has a debt problem. Large property developers like the embattled company Evergrande have racked up massive amounts of debt, leading to construction stoppages and lots of angry homebuyers. Amid the turmoil, buyers across China have banded together and threatened to stop paying mortgages on over three hundred unfinished housing projects. The Chinese government could unleash bailout funding worth up to $148 billion aimed at allowing developers to finish their buildings. “Marketplace Morning Report” host David Brancaccio joined Jennifer Pak, Marketplace’s China correspondent, to go over the latest developments in the crisis. The following is an edited transcript of their conversation: David Brancaccio: So what’s this about…
