Future Publishing | Future Publishing | Getty ImagesWeakness in China's real estate sector could be a drag on the economy for years to come and could even impact countries in the wider region, Wall Street banks have warned.
"We only assume an 'L-shaped' recovery in the property sector in coming years," they said.
watch nowGoldman Sachs economists also noted there are expectations for China's government to introduce more housing stimulus packages to support the sector.
If the challenges in the property sector deepen and bring risk aversion in the financial system and affect consumer confidence, this will cause a deeper slowdown in China.
watch nowHui said the government's push to cap property prices at a certain level could be missing a big chunk of potential buyers.
Persons:
Goldman Sachs, Lisheng Wang, Goldman, Tai Hui, Morgan Stanley, Hui, CNBC's, that's
Organizations:
Future Publishing, Reuters, Market
Locations:
CHINA, Nanning, South, Guangxi Zhuang, Wall, China, Asia