china property sector

real estate investment trusts in China

China’s Real Estate Sector: Size Does Matter

Luís Pinheiro de Matos (CaixaBank Research) | China’s real estate sector is often described as «the most important sector in the world» because of the importance it has amassed in recent decades in the Asian giant’s growth model. We analyse how significant a role it plays in the Chinese economy and the risks of the Evergrande effect.


An exterior view of China Evergrande Centre in Hong Kong

Watch Evergrande: Chinese Real Estate Giant’s Debt Means 2% Of The Country’s GDP

China’s country’s largest real estate company, Evergrande, which is on the verge of bankruptcy with more than $300 billion in debt (about 2% of China’s GDP), has announced that it will not be able to pay interest next week. Weak home sales, especially in the last year, have put it in this cash-strapped position. Therefore, the situation is becoming increasingly tense. The group is described by Beijing as a “grey rhinoceros”, i.e., a large company with an alarming debt load representing a systemic financial risk.





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China: optimism on the rise again

MADRID | The Corner | Once again markets have embraced optimism about China, leaving fears of a hard landing and a credit crisis that dominated in 1Q behind. As Barclays analysts pointed out on Thursday, the onshore equity market has risen 6% in the past two weeks, with the low-valuation bank and property sectors advancing more than 10%.