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☆ Evergrande liquidation: Here’s what may happen next
▼ + stars: | 2024-01-31 | by ( Laura He | ) edition.cnn.com time to read: +9 min

But there is still little clarity over how the liquidation of Evergrande will unfold. That’s because the legal systems of Hong Kong and China remain distinct, despite Beijing’s growing control over the former British colony in recent years. No Chinese company as huge as Evergrande — which was once China’s second largest developer— has been wound up by a Hong Kong court. Hui Ka Yan, chairman of property developer China Evergrande. Since then, Evergrande has been building and selling apartments in mainland China, even though it has been unable to repay its debts.

Persons: Alvarez, Marsal, —, ”, John Bringardner, Hong, Hui Ka Yan, Xu Jiayin, Hui, Xiao En, Bobby Yip, Xiao, Evergrande, Florence Lo, homebuyers, Will, Andy Wong, Diana Choyleva, Xiao Yuanqi, ” Bringardner, ” Choyleva, Choyleva, “ Evergrande Organizations: Hong Kong CNN, Shimao, Kaisa Holdings, Group, “, Real, Century Business Herald, China Index Academy, Enodo, Communist Party, China’s, Financial Regulatory Administration, Getty, People’s Bank of China, Finance Ministry, Evergrande, Marsal Locations: Hong Kong, United States, China, British, New York, China . Hong Kong, Shenzhen —, Asia, Florence, Beijing, Real, Hainan

☆ China new home prices inch up for third month in November - survey
▼ + stars: | 2023-12-01 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Jason Lee/File Photo Acquire Licensing RightsBEIJING, Dec 1 (Reuters) - China's new home prices rose slightly for a third straight month in November, a private survey showed on Friday, as the crisis-hit property sector struggles to stabilise despite a slew of government support measures. Prices rose 0.05% on average from the previous month after gains of 0.07% and 0.05%, according to the survey by real estate research firm China Index Academy. Government support for the property sector in recent months has included easing curbs on home purchases and cutting mortgage costs. A Reuters poll on Wednesday found expectations for 1% growth in new home prices next year, little changed from an August poll. "Beijing is turning more proactive to stabilise growth and the new dual-track housing model may help stabilise the property sector in the coming quarters," HSBC said on Thursday.

Persons: Jason Lee, Liangping Gao, Ryan Woo, William Mallard Organizations: REUTERS, Rights, China Index Academy, Index Academy, HSBC, Thomson Locations: Beijing, China, Rights BEIJING

SummaryCompanies cpurl://apps.cp./cms/?pageId=house-poll poll dataNew home prices will likely rise in 2024Property sales, investment seen continuing to slide next yearBEIJING, Nov 29 (Reuters) - Prices of new homes in China are now expected to climb 3% this year after a slew of policy measures to support the country's beleaguered property market, up from earlier expectations for prices to be flat, a Reuters poll showed. But the poll of 11 economists, conducted Nov. 20-28, also showed expectations for 1% growth in new home prices in 2024 were little changed from an August poll. According to the poll, property investment is expected to slump 10% in 2023 and then 8.4% in 2024. Regulators are drafting a list of 50 property developers eligible for a range of financing support, including Country Garden (2007.HK) and state-backed China Vanke (000002.SZ), Bloomberg reported last week. (For other stories from the Reuters quarterly housing market polls)Reporting by Liangping Gao and Ryan Woo; Editing byOur Standards: The Thomson Reuters Trust Principles.

Persons: Huang Yu, Wang Xingping, Liangping Gao, Ryan Woo Organizations: China Index Academy, Fitch, Regulators, HK, Bloomberg, Thomson Locations: BEIJING, China

Developers, financial advisers and bondholders said that could make debt restructuring terms much worse than expected earlier. DEFAULTING DEVELOPERSThe property sector accounts for roughly a quarter of the world's second-largest economy. That could trigger off one of the world's biggest debt restructuring exercises. However, a turnaround (in the property sector) may need more," said Chuanyi Zhou, Asia corporate analyst at Columbia Threadneedle Investments, which holds Sunac's bonds. Chinese policymakers rolled out a range of support measures in late August and early September to revive the property sector.

Persons: Shimao, Chuanyi Zhou, Yuzhou, Edward Al, Clare Jim, Xie Yu, Davide Barbuscia, Sumeet Chatterjee, Kim Coghill Organizations: HONG KONG, JPMorgan, HK, Shimao, CIFI Holdings, Columbia Threadneedle Investments, Developers, Reuters, Kaisa, Columbia, China Index Academy, Thomson Locations: HONG, China, Asia, Hong Kong, New York

The company logo of Chinese developer Country Garden is pictured at the Shanghai Country Garden Center in Shanghai, China August 9, 2023. Country Garden, which missed two dollar interest payments last month, has two coupons totalling $66.8 million coming due on Monday. Country Garden has $10.96 billion offshore bonds and 42.4 billion yuan ($5.81 billion) worth of loans not denominated in yuan. "Until then, the base case is that China Evergrande Group will be liquidated at the next winding up hearing on October 30, 2023." Shares in Country Garden fell more than 6% on Monday, while Evergrande Group shares tumbled 11%, compared to a 1.9% fall in the Hang Seng Mainland Properties Index (.HSMPI).

Persons: Aly, Cailianshe, Evergrande, Clare Jim, Scott Murdoch, Lincoln Organizations: Shanghai Country Garden, REUTERS, HK, China Evergrande, . Media, Reuters, UBS, China Index Academy, Garden, Evergrande Group, Mainland Properties, Energy Vehicle Group, U.S, Thomson Locations: Shanghai, China, HONG KONG, BEIJING, Beijing, Hang, Hong Kong, Sydney

☆ China new home prices tick up in Sept, ending four-month decline - survey
▼ + stars: | 2023-10-01 | by ( ) www.reuters.com time to read: +2 min

Prices rose 0.05% on average from the previous month after falling since May, according to a survey by China Index Academy, a real estate research firm. Confidence in the property sector, which accounts for one-fourth of economic activity, has been hit since 2021 when Beijing cracked down on debt accumulation by developers, fuelling a debt crisis. Deepening problems in the sector this year have dragged on the world's second-biggest economy and rattled global financial markets. These policies have given major cities like Beijing a tiny boost in new home sales, but some worry the improvement might be short-lived and could potentially dry up demand in smaller cities. If such policies continue to be optimised, the report said, the market in first-tier cities are likely to stabilise this quarter while recovery in smaller cities might take longer.

Persons: Brenda Goh, Liangping Gao, William Mallard Organizations: China Index Academy, China Evergrande, HK, Thomson Locations: SHANGHAI, Beijing, China

The figures suggest that China's latest steps to revive a crisis-hit property market, including lower mortgage rates and down payments, could unlock some pockets of housing demand in the most sought-after areas, but may struggle to halt the broader property market downturn. "These measures may generate a short-term rebound in property transactions, but are insufficient to stabilize the property market," Goldman Sachs analysts said in a note. But Yu Fei, a property sales agent at HomeLink, said the initial spike in interest he noticed in the first few days is already petering out. "Many homebuyers remain in a wait-and-see approach, some hoping for more radical policies to stimulate the property market," Yu said. Goldman analysts said if property sales kept sliding policymakers could release more liquidity into the market by cutting banks' reserve requirement ratios, lowering rates, easing home purchasing rules further.

Persons: Jason Lee, Goldman Sachs, Zhang Guoqiang, I'm, Zhang, Zhao Jie, Yu Fei, Yu, Goldman, Wan, Emelia Sithole Organizations: REUTERS, China Index, Haitong Securities, Longfor, HK, Thomson Locations: Beijing, China, BEIJING, HONG KONG, China's

☆ China's heading for another real estate crisis — but it's on a whole different scale than what it's seen before
▼ + stars: | 2023-08-10 | by ( Nidhi Pandurangi | ) www.businessinsider.com time to read: +8 min

Country Garden, a massive Chinese property developer, missed interest payments on two dollar bonds this week. However, it's the scale of Country Garden's projects that is a big warning signal for the Chinese real estate sector and the wider economy. Evergrande faced a liquidity crisis in 2020, prodding it to try to halve its around $100 billion debt by mid-2023. These efforts were scuppered by a slowdown in China's property sector and regulators' efforts to put brakes on property developers borrowing excessively. However, putting the brakes on borrowing started sending the property sector into a crisis.

Persons: Kristy Hung, Yang Guoqiang, Yang Huiyan, Yang, Moody's, Sandra Chow, Evergrande, Huileng Tan Organizations: Service, Bloomberg Intelligence, Hong Kong Stock Exchange, CNN, China Index Academy, Reuters, Pacific Research, New York Times, Caixa Bank Locations: Beijing, Wall, Silicon, China, Evergrande, Foshan, Asia, Pacific, CreditSights

☆ Country Garden default? China's property crisis deepens as developer misses bond payments
▼ + stars: | 2023-08-09 | by ( Laura He | ) edition.cnn.com time to read: +5 min

The latest major industry player to get into trouble is Country Garden, once China’s largest developer. Several of Country Garden’s yuan-denominated bonds were suspended from trading in Shanghai and Shenzhen on Tuesday after they dropped by more than 20%. Country Garden did not respond to a request from CNN for comment. An aerial view of a residential project developed by Country Garden Holdings is seen in Zhenjiang, Jiangsu province on October 31, 2021. Property crisis deepensChina’s property industry has been mired in a historic downturn in the past two years.

Persons: “, Fang Dongxu, ”, Edward Moya, Moody’s, Kaven Tsang, Li Qiang Organizations: Hong Kong CNN —, Reuters, CNN, Country Garden Holdings, China Index Academy, Oanda, China’s, People’s Bank of Locations: Hong Kong, Shanghai, Shenzhen, Zhenjiang, Jiangsu province, China, Moody’s, Beijing, People’s Bank of China

☆ China new home prices edge down in June for second consecutive month
▼ + stars: | 2023-07-01 | by ( ) www.reuters.com time to read: +1 min

BEIJING, July 1 (Reuters) - New home prices in China edged down in June from the previous month, marking a second straight month of declines, and housing sales are likely to remain weak over the summer when demand is usually at a low ebb, according to a private survey. "In the first quarter, market confidence, driven by a concentrated release of pent-up demand, gradually returned and prices appeared to be recovering," the real estate research firm said. "In the second quarter, the pace of market recovery slowed and there was not enough momentum for prices to rise," it added. "If policy support is limited, it will be difficult for home buyer confidence to improve," China Index Academy said. The property sector accounts for a roughly a quarter of China's economy.

Persons: Sophie Yu, Brenda Goh, Edwina Gibbs Organizations: China Index, China Index Academy, Thomson Locations: BEIJING, China

☆ A desperate property developer in China said it would give a gold bar to anyone who buys a home it builds. Homebuyers say they're still waiting.
▼ + stars: | 2023-06-13 | by ( Kwan Wei Kevin Tan | ) www.businessinsider.com time to read: +5 min

A Chinese property developer is offering gold bars to buyers in a desperate bid to boost home sales. According to The Guardian and local media outlets, the property developer in question is Huafa Group, which is based in Hangzhou, a city in eastern China. Disgruntled buyers are raging over the gold barsHowever, some buyers have been kept waiting for the promised gold after purchasing a flat. A staff member at Huafa told Insider the Huafa Hui Tianfu development had "nothing to do" with them. Flashy giveaways are commonplace in China's property marketThis is not the first time Chinese property developers have dangled freebies to entice homebuyers.

Persons: —, they've, monthslong, Hui Tianfu, China's, Zhu, Xian, Shao, Xiao Qiang, homebuyers Organizations: Service, Guardian, Weibo, China's Twitter, Huafu Group, Jiemian, Huafa, Qianjiang Evening, Estate Development Corporation, China Index Academy, Bloomberg, Wall Street Locations: Hangzhou, China, Hangzhou Yuejia

☆ Economic stimulus in China would be a win for 3 stocks tied to Chinese consumers
▼ + stars: | 2023-06-13 | by ( Paulina Likos | ) www.cnbc.com time to read: +6 min

The recovery in China has been much slower than what other major countries experienced when they lifted their pandemic restrictions. Still, the Chinese consumer has proved to be resilient in the face of these broader economic challenges. It marked the fastest pace of growth since the first quarter of 2022, fueled by higher spending from Chinese consumers. Club stock results Recent financial results from our China-exposed companies show that Chinese consumers have been holding up even as broader economic recovery is delayed. China is a growth market for each company and improvement in economic activity there should be a catalyst for these stocks.

Persons: Estee Lauder, —, Ting Lu, WYNN, hasn't, Jim Cramer's, Jim Cramer, Jim, Jason Lee Organizations: Starbucks, Wynn Resorts, WYNN, China Index Academy, National Bureau of Statistics, Club, Gaming, Prestige, CNBC Locations: China, China's, Beijing, Macao, Asia, SBUX

☆ China new home prices, sales fall on soft demand in May
▼ + stars: | 2023-06-01 | by ( ) www.reuters.com time to read: +1 min

New home prices among 100 cities fell 0.01% month-on-month in May from 0.02% growth the previous month, according to survey data from the China Index Academy on Thursday. Home sales by value by property developers fell 18.8% from a month earlier, the independent real estate research firm said in a separate statement on Wednesday. "The real estate market was under greater adjustment pressure and homebuyers' sentiment continued to fall in May," said the firm. The property sector gained a boost from the lifting of tough COVID curbs in December, low mortgage interest rates and a slew of policy support measures. "These (bearish) property market data will likely further weigh on China-related assets in the next couple of weeks," said Nomura.

Persons: Nomura, Liangping Gao, Ryan Woo, Kim Coghill Organizations: China Index Academy, Thomson Locations: BEIJING, China

☆ China new home sales rise sharply in March - survey
▼ + stars: | 2023-04-03 | by ( ) www.reuters.com time to read: +2 min

BEIJING, April 3 (Reuters) - China's new home sales rose sharply in March, as a slew of support policies boosted a pickup in demand across the board in 14 surveyed cities, a private survey showed on Monday. The sales of new homes rose 55.7% month-on-month, up from growth of 31.9% in February, according to data from the China Index Academy — one of the country's largest independent real estate researchers. Tier-one cities — including the nation's capital Beijing and the commercial hub of Shanghai — rose the fastest, jumping 73% last month. Sales in tier-two cities and tier-three cities grew 54.7% and 28.6%, respectively. Prices of new homes in 100 Chinese cities rose at the fastest pace in nine months in March, a separate survey by the researcher showed on Saturday.

☆ In China, more families on the fence on home buying, foreclosures cloud sector
▼ + stars: | 2023-02-23 | by ( ) www.reuters.com time to read: +3 min

Stabilising the crisis-hit property sector will be a key challenge for policymakers this year as they try to kick-start an economic recovery. The number of families opting to stay on the sidelines for property in the last quarter rose to 27.2% of respondents from 20.1% in July-October, the survey showed. Respondents' willingness to allocate money to domestic stocks, funds, and overseas asset classes also increased, the survey showed. Cities with high numbers of foreclosures were mostly in central and western China, as well as the prosperous Yangtze River Delta and Pearl River Delta regions, according to the property research firm. But analysts expect a sustainable recovery in the sector will only kick in towards the second half of this year.

☆ China establishes mortgage rate adjustment mechanism for some home buyers
▼ + stars: | 2023-01-06 | by ( ) www.reuters.com time to read: +2 min

BEIJING, Jan 5 (Reuters) - China's central bank and the banking and insurance regulator have established a dynamic adjustment mechanism on mortgage rates for first-time home buyers, the central bank said on Thursday, in a bid to further support the property sector. The crisis in China's property market, once a pillar of the world's second-biggest economy, worsened last summer with home prices, sales and investment all falling sharply. According to analysts' calculation, 38 cities are eligible for adjustable mortgage rate floors, including some second-tier cities such as Wuhan and Zhengzhou and more than 20 smaller cities. Analysts said the move shows the government's growing intent to support demand in weak cities, but added the impact may be limited. "Lowering mortgage rates has not been able to drive sales.

Property investment in November fell the fastest since the statistics bureau began compiling data in 2000, down 19.9% on year. "Although property sales and starts will likely be slightly weaker than in 2022, property will be much less of a drag on the economy than in 2022." Reuters GraphicsHOUSING DEMANDShares in embattled Chinese property developers have gained 86% since the trough in October, buoyed by a string of property easing measures and the COVID policy u-turn. "We may be close to see some bottoming out in housing demand …but I don't think we're quite there yet," he said. The latest China Beige Book private economic survey was more blunt: "But forget a return to days of old: it will take considerable policy support in 2023 just to pull property out of the gutter."

☆ China's holiday home sales rise 27.1% y/y - private survey
▼ + stars: | 2023-01-03 | by ( ) www.reuters.com time to read: +2 min

Among 22 cities selected by the China Index Academy, the average daily floor area of homes sold rose 27.1% from last year's holiday season. The firm also said major cities such as Beijing and Shanghai saw a rise in sales compared with last year's New Year holiday but sentiment remained at low level in most small cities. Compared with last year's holiday season, home sales rose 80% in Beijing, 74% in Shanghai and 131.5% in Guangzhou. China's property market crisis worsened in 2022, with official data showing home prices, sales and investment all falling in recent months, putting more pressure on the faltering economy. New-home prices in the 100 Chinese cities monitored by the firm fell 0.02% year-on-year in 2022, the first decline since 2015, the real estate research firm said.

☆ China home prices fall at faster pace in December - private survey
▼ + stars: | 2023-01-01 | by ( ) www.reuters.com time to read: +2 min

BEIJING, Jan 1(Reuters) - China's home prices fell at a faster pace in December, according to a private survey on Sunday, reflecting persistently weak demand amid rising COVID-19 cases despite a slew of support measures. China's property market crisis worsened this summer, with official data showing home prices, sales and investment all falling in recent months, adding pressure on the faltering economy. Home prices in 100 cities fell for the sixth month in a row in December, declining 0.08% from a month earlier after falling 0.06% in November, according to the survey by China Index Academy (CIA), one of the country's largest independent real estate research firms. Among the 100 cities, 68 cities posted a fall in monthly prices, compared with 57 in November, the survey showed. "Real estate policies may continue to maintain an accommodative tone with room for policy easing on the supply and demand side in 2023," said the real estate research firm, adding "the housing market is expected to stabilize gradually next year."

☆ China's home prices fell at an accelerating rate in December, survey shows
▼ + stars: | 2023-01-01 | by ( ) www.cnbc.com time to read: +2 min

Home prices in 100 cities fell for the sixth month in a row in December, according to a private Chinese survey. China's home prices fell at a faster pace in December, according to a private survey on Sunday, reflecting persistently weak demand amid rising Covid-19 cases despite a slew of support measures. China's property market crisis worsened this summer, with official data showing home prices, sales and investment all falling in recent months, adding pressure on the faltering economy. Among the 100 cities, 68 cities posted a fall in monthly prices, compared with 57 in November, the survey showed. But the virus is now spreading largely unchecked and likely infecting millions of people a day, according to some international health experts.

☆ A house price slump is coming. Rising unemployment could make it much worse
▼ + stars: | 2022-11-23 | by ( Hanna Ziady | ) edition.cnn.com time to read: +10 min

Brendon O'Hagan/Bloomberg/Getty ImagesNew Zealand is at the sharp end of a global housing market squeeze that has grim ramifications for the world economy. “In an ideal world, you’ll get a bit of froth blown off the top [of house prices] and everything is fine. “A decisive increase in unemployment is a very big danger for housing markets,” said Slater of Oxford Economics. Qilai Shen/Bloomberg/Getty ImagesA drag on the economyMost market watchers are not expecting a repeat of the 2008 housing market crash. But even a modest a fall in house prices will knock confidence, causing homeowners to cut back on spending.

☆ China's property prices to rise in 2023, sales to fall more slowly
▼ + stars: | 2022-11-18 | by ( ) www.reuters.com time to read: +3 min

"Property measures are expected to strengthen support, which will improve residents' confidence." A recent slew of support measures, including loan repayment extensions, aimed at improving liquidity in the property sector has underpinned market sentiment. But analysts and economists in the poll expected concerns about falling house prices, protracted COVID restrictions, and delays in construction to continue to weigh on demand. Property sales were seen slumping 5.0% in the first half of 2023, a smaller drop than the 15.0% fall forecast in the September poll. Some analysts say average house prices will need to fall by around 20% to 30% to entice demand.

☆ China's real estate crisis could be over with new rescue plan. Property stocks are soaring
▼ + stars: | 2022-11-14 | by ( Laura He | ) edition.cnn.com time to read: +3 min

Hong Kong CNN Business —Chinese authorities are making their biggest effort yet to end a crisis in the country’s vast real estate sector that has weighed heavily on the economy over the past year. Tao Wang, chief China economist at UBS, described the package of measures as a “turning point” for China’s property sector. Along with other policies announced earlier this year, it could inject more than 1 trillion yuan ($142 billion) into real estate, she estimated. In October, sales by the 100 biggest real estate developers contracted 26.5% from a year ago, according to a private survey by China Index Academy, a top real estate research firm. “Beijing’s zero-Covid strategy, despite some latest fine tuning, will continue to weigh on the property sector,” they added.

☆ China property slump persists in October with falling prices, sales as COVID bites
▼ + stars: | 2022-11-01 | by ( Reuters Staff | ) www.reuters.com time to read: +2 min

BEIJING (Reuters) - China’s property market continued its slump in October, with private data showing home prices and sales falling, suggesting lacklustre sentiment and a bleak outlook amid strict COVID curbs, which hit consumer confidence. Property sales by floor area in 100 cities fell about 20% year-on-year in October, according to a separate statement by the academy. Analyst Chen Wenjing at the research firm said property recovery depends on COVID containment measures and the strength of policies. Any rebound in the real estate market is expected to be delayed if the country sticks with strict COVID restrictions to quell the repeated coronavirus outbreaks, Chen said. Home sales by floor area in Shanghai and Guangzhou fell 35% and 26% in annual terms, respectively.

☆ China property stocks rise after easing of share financing rules
▼ + stars: | 2022-10-21 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Aly SongSHANGHAI, Oct 21 (Reuters) - China's property shares jumped on Friday after state media said authorities will ease share financing rules for certain real estate-related firms, fuelling hopes of more measures to aid the struggling sector. The China Securities Regulatory Commission (CSRC) will allow certain companies with small property interests to raise money by selling A-shares, but the proceeds cannot be invested in the real estate business, China Securities Journal reported. For eligible companies, real estate must not be their core business, and should not contribute more than 10% of their profit, according to the article. Register now for FREE unlimited access to Reuters.com RegisterChina has barred its property firms or property-related firms from financing via the domestic A-share market since end-2018, including both IPOs and additional or follow-up share sales. "The move aims to better support real financing for firms and stabilise the broader economy," said Liu Shui, an analyst at China Index Academy.

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