China's Property Sector Faces Crisis with Government Support Urgently Needed
China's property sector, which accounts for around 22% of the country's GDP, is facing increasing troubles and needs more support from the Beijing government to prevent further deterioration. Existing home prices in China fell by 0.6%, the most since 2014 in October, while outstanding property loans declined for the first time in history last month. Policy measures so far have focused on boosting homebuyer demand but have not addressed credit risks facing real estate developers, which could lead to a self-fulfilling confidence crisis. Recent data shows China's property market troubles are still worsening, with prices continuing to decline in major cities.
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00:00 It's Benzinga and here's what's on the block.
00:02 China's property sector, which accounts for around 22% of the country's GDP, is facing
00:07 increasing troubles and needs more support from the Beijing government to prevent further
00:11 deterioration.
00:13 Existing home prices in China fell by 0.6%, the most since 2014 in October, while outstanding
00:19 property loans declined for the first time in history last month.
00:23 Policy measures so far have focused on boosting homebuyer demand, but have not addressed credit
00:27 risks facing real estate developers, which could lead to a self-fulfilling confidence
00:31 crisis.
00:33 Recent data shows China's property market troubles are still worsening, with prices
00:37 continuing to decline in major cities.
00:39 For all things money, visit Benzinga.com!
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