{"id":603229,"date":"2023-08-15T00:00:00","date_gmt":"2023-08-15T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/08\/15\/concerns-about-chinese-economy-mount-as-countrys-largest-property-developer-wobbles\/"},"modified":"2023-08-15T00:00:00","modified_gmt":"2023-08-15T00:00:00","slug":"concerns-about-chinese-economy-mount-as-countrys-largest-property-developer-wobbles","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/08\/15\/concerns-about-chinese-economy-mount-as-countrys-largest-property-developer-wobbles\/","title":{"rendered":"Concerns about Chinese economy mount as country\u2019s largest property developer wobbles"},"content":{"rendered":"

Trouble is brewing again in China\u2019s property sector: <\/strong> Global attention is returning to China\u2019s huge property market as mounting problems at the country\u2019s largest developer fuel concern of contagion in the crisis-hit sector. Country Garden\u2019s share price plunged more than 18% yesterday after the company suspended trading in a number of its bonds as it tries to raise funds to avert default. The situation at the highly-indebted company took a turn for the worst last week when it failed to meet interest repayments and announced a USD 7.6 bn first-half loss.<\/p>\n

Remember: <\/strong> China\u2019s property market has been in a slow-motion crisis for two years, which peaked in late 2021 when Evergrande \u2014 then the country\u2019s second-largest developer \u2014 defaulted on its debt. With Country Garden now wobbling, analysts are warning<\/a> about spillover effects into other areas of the Chinese economy and the financial system. Exhibit A: Zhongzhi, a USD 138 bn wealth manager, has reportedly missed payments<\/a>, sparking concern in Beijing<\/a> about its exposure to real estate.<\/p>\n

Why this matters: <\/strong> A full-blown financial crisis in the world\u2019s second-largest economy is not good news for the global economy.<\/p>\n

ALSO WORTH NOTING- <\/strong><\/p>\n