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China's property 'inventory overhang' could take more than 10 years to correct, economist says - TL;DR CNBC

China's property 'inventory overhang' could take more than 10 years to correct, economist says

Publishing timestamp: 2024-01-04 01:32:06


Summary

China is facing a long-term correction in its property sector, with housing inventory likely to take more than 10 years to clear. The real estate developers are struggling with a debt crisis, and measures have been implemented to limit their debt. The property sector has peaked, and the market is not prepared for a long-term correction, leading to a lack of confidence and market response. The lingering property crisis has impacted consumer confidence and the broader economy, leading to calls for more aggressive stimulus. China's leaders have pledged to address risks in the property sector and focus on high-quality development. The central bank has extended loans to policy banks to support infrastructure construction and the housing sector.


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Keywords: business newschinachina evergrande groupcountry garden holdings co ltdasia economyeconomic eventsreal estate

Source: https://www.cnbc.com/2024/01/04/chinas-housing-inventory-may-take-more-than-10-years-to-correct-economist.html


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