How bad off is China's property sector?

 

 How bad off is China's property sector?

The world's most heavily indebted property developer, China Evergrande Group, on Thursday filed for protection under Chapter 15 of the U.S. Bankruptcy Code to shield its assets from creditors, again raising concerns among global investors and businesses about the future of China's real estate market and related businesses. How dire are things in China's property sector? Major developments have taken place in recent weeks. 

China Evergrande files for bankruptcy protection in New York

Evergrande has filed for bankruptcy in New York to protect its U.S. assets from creditors as it undergoes restructuring. The move comes as concerns grow over indebtedness among property developers in China and the potential for their financial woes to slow growth in the world's second-largest economy. 

China home price survey shows wider fall amid Country Garden woes

China is experiencing a broad decline in residential housing prices. In July, new residential sale prices dropped from the previous month in 70% of 70 major cities covered in a survey. Along with concerns over the country's slowing economy, anxiety over the shaky finances of some real estate developers, including Country Garden, is weighing on market sentiment. 

China real estate slump deepens with 8.5% investment drop

Chinese data released this week revealed that total investment in real estate development for the January to July period fell 8.5% from a year earlier to 6.77 trillion yuan ($943.5 billion). The steep decline comes as some developers scramble for new funds. Read more.
Evergrande unit probed by Chinese securities watchdog

Days before Evergrande filed for bankruptcy, its unlisted domestic property arm, Hengda Real Estate, issued a statement saying China's securities watchdog had opened an investigation into the company over allegations of a possible breach of disclosure rules. Read more.
China's growth model under strain, but stimulus faces high hurdles

China's depressed property market is undermining the country's economic growth model. However, strained local government finances and a weak yuan have made authorities hesitant to embark on the sort of massive stimulus it used to prop up the economy after the global financial crisis. 

Investors pulling out of Chinese stocks at faster pace

In the first 14 days of August, a total of around $3.7 billion was pulled out of Chinese stocks. Investors are retreating from the Chinese stock market amid growing fears about the prospects for the country's economy, especially as the health of the real estate sector comes into question.