China’s property market faces a sharp slowdown as Chinese debt levels reach the perilous level of 240% of GDP following a decade of over-borrowing and over-building. Property markets outside China’s tier-one cities remain weak and the government is pushing for China’s asset managers and banks to offer more credit to ailing property development companies and swap debt for equity. The Shanghai Composite Index fell by 3.9%, its biggest drop in six years, on Monday after falling below 10,000 points for the first time since June 2014. Goldin Tianjin development saw sales fall to HK$27m in the six months to 30 September 2015 from HK$479m a year earlier.
China’s property market faces a sharp slowdown as Chinese debt levels reach the perilous level of 240% of GDP following a decade of over-borrowing and over-building. Property markets outside China’s tier-one cities remain weak and the government is pushing for China’s asset managers and banks to offer more credit to ailing property development companies and swap debt for equity. Meanwhile, Hong Kong’s new ambitious $10bn Goldin Tianjin development saw sales fall to HK$27m in the six months to 30 September 2015 from HK$479m a year earlier.