"We think the situation is probably getting a little bit worse because of this Country Garden incident," Chan told CNBC in a phone interview Thursday.
The debt troubles at Country Garden and the uncertainty of government support are feeding into broader unease in the Chinese housing market.
Louise Loo Oxford EconomicsThe Chinese property sector has been reeling since 2020, when Beijing cracked down on the debt levels of mainland property developers.
Chan said S&P's bear case for China's property sector is for 11 trillion yuan in sales this year, and 10 trillion yuan for 2024.
Land sales divergenceAs China's property sector consolidates amid the debt and credit malaise, state-owned developers are better positioned to grow than non-state ones.
Persons:
Edward Chan, Chan, Evergrande, Louise Loo, Global's Chan, That's, China's, Gary Ng
Organizations:
Future Publishing, CNBC, JPMorgan, Louise Loo Oxford, Oxford Economics, Natixis Corporate, Investment Banking
Locations:
Chengdong, Hai, City, East China's Jiangsu Province, China, U.S, China's, Beijing