Reuters reported that Chinese developers are in survival mode and have sharply cut property investment in July while new construction starts suffered their biggest fall in nearly a decade, suggesting the liquidity-challenged sector is not about to turn the corner anytime soon. China's property market has been trapped in a capital crisis since the summer of 2020, leading some cash-strapped developers to default on their debts and struggle to complete projects. Wary buyer sentiment has also chilled new investment by developers.National Bureau of Statistics data showed that Property investment in July fell 12% YoY, the biggest decline in 2022New construction starts by floor area slumped by 45%, the largest drop since January-February 2013Loans granted by domestic banks dropped 37%Capital raised from abroad plunged 200%Household loans fell to CNY 122 billion yuan in July from CNY 848 billion in JuneNew home prices fell 0.9% on year in July, the fastest pace since September 2015
Reuters reported that Chinese developers are in survival mode and have sharply cut property investment in July while new construction starts suffered their biggest fall in nearly a decade, suggesting the liquidity-challenged sector is not about to turn the corner anytime soon. China's property market has been trapped in a capital crisis since the summer of 2020, leading some cash-strapped developers to default on their debts and struggle to complete projects. Wary buyer sentiment has also chilled new investment by developers.National Bureau of Statistics data showed that Property investment in July fell 12% YoY, the biggest decline in 2022New construction starts by floor area slumped by 45%, the largest drop since January-February 2013Loans granted by domestic banks dropped 37%Capital raised from abroad plunged 200%Household loans fell to CNY 122 billion yuan in July from CNY 848 billion in JuneNew home prices fell 0.9% on year in July, the fastest pace since September 2015
