{"id":12937,"date":"2023-08-25T06:30:04","date_gmt":"2023-08-25T06:30:04","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=12937"},"modified":"2025-04-23T09:06:14","modified_gmt":"2025-04-23T09:06:14","slug":"is-chinas-property-crisis-spilling-over-into-other-sectors","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/is-chinas-property-crisis-spilling-over-into-other-sectors\/","title":{"rendered":"Is China\u2019s property crisis spilling over into other sectors?"},"content":{"rendered":"

In recent weeks, a string of business developments in China have stoked fears that contagion could lead to a chain of defaults and perhaps even stoke a marked growth slowdown in China with global repercussions<\/h2>\n

On Thursday, 10 August, Country Garden, one of the few major developers in China to avoid bankruptcy in recent years, issued a profit warning. The next day, its shares fell to record lows, affecting the wider property sector; the Hang Seng Mainland Property Index fell 1.49% the same afternoon. On Monday, 14 August, Country Garden delayed payment on a private onshore bond for the first time.<\/p>\n

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On Thursday, 17 August, Zhongzhi Enterprise Group \u2013 a major Beijing-based asset manager with considerable exposure to the property sector that has a reported RMB 1 trillion (\u00a3108.5 billion) in assets \u2013 told investors that it needs to restructure its debt. It had already been missing payments on dozens of financial products. Reuters reported that Zhongzhi had hired one of the Big Four accounting firms to audit it.<\/p>\n

The same day, China\u2019s property giant Evergrande<\/a>, which defaulted in 2021,\u00a0filed\u00a0for bankruptcy protection in New York. It was also informed by China\u2019s securities regulator that it is being investigated for suspected disclosure violations.<\/p>\n