The Chinese property industry is facing potentially huge layoffs, as corporate debt rises to unprecedented levels. 136 firms have liabilities totalling more than CNY10tn ($1.47tn), according to a state-run newspaper report, which credits information service company Wind. In the past few months, China has been hit by two major credit crunches. The Shanghai Stock Exchange has suspended the corporate bonds of nine property firms this year. Investments which once went into the country’s property market are going into the rental market, now backed by government, in a bid to slow the property market down.
The Chinese property industry is facing potentially huge layoffs, as corporate debt rises to unprecedented levels. 136 firms have liabilities totalling more than CNY10tn ($1.47tn), according to a state-run newspaper report, which credits information service company Wind. Property companies are also finding it harder to obtain new loans. The Shanghai Stock Exchange has suspended the corporate bonds of nine property firms this year. Investments which once went into the country’s property market are going into the rental market, now backed by government, in a bid to slow the property market down.