Chinese property sector’s debt crisis to intensify in 2022
- Date: 31-Dec-2021
- Source: The Guardian
- Sector:Real Estate
- Country:Middle East
Chinese property sector’s debt crisis to intensify in 2022
The crisis engulfing the Chinese property sector appears certain to intensify in 2022 as companies face debt repayments in the new year that are double those of the final months of 2021, risking what one China expert calls a systemic crisis for the world’s second-biggest economy.
Although concerns about the stricken giant China Evergrande have receded in recent weeks behind a massive state-led restructuring operation, it missed a bond repayment of $255m (£190m) on Thursday and the debt problems that have pushed the second biggest developer in the country into default are blighting many other firms.
In total, China’s developers owe $19.8bn in dollar-denominated offshore debt in the first three months of 2022, analysts at Nomura said. That is almost twice as much as the $10.2bn they were faced with in the final quarter of 2021 – a burden which caused default at Evergrande and the threat of default at several other developers such as Kaisa.
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