China is taking steps to revive its housing market and bolster the income of debt-ridden cities. In February 2021, authorities introduced rules that limited key cities to just three land auctions per year. The restrictions were put in place to discourage speculative bidding by developers during China’s property boom days.
At the same time, a $2 trillion swathe of China’s local bond market is at a tipping point as issuers struggle to refinance maturing debt. CRIC Securities Research Division, under E-house China, has reported that the real estate sector in China will have a major debt repayment period in the first three quarters of 2023. The report further states that China's real estate supply, demand, and transaction volume will not show any significant signs of recovery in the short term.
0. “China quietly pivots from land sale limits to stem housing slump” The Straits Times, 20 Feb. 2023, https://www.straitstimes.com/business/china-quietly-pivots-from-land-sale-limits-to-stem-housing-slump
1. “China’s $2 Trillion LGFV Bond Market Flashes Warning Sign” Caixin Global, 16 Feb. 2023, https://www.caixinglobal.com/2023-02-16/chinas-2-trillion-lgfv-bond-market-flashes-warning-sign-101998722.html
2. “China's Housing Companies Face Debt Ceiling in 2023” The Epoch Times, 15 Feb. 2023, https://www.theepochtimes.com/chinas-housing-companies-face-debt-ceiling-in-2023_5052745.html
3. “World News | China's Property Sales Static Despite Central Bank Enacting Policies to Stimulate Market” LatestLY, 17 Feb. 2023, https://www.latestly.com/agency-news/world-news-chinas-property-sales-static-despite-central-bank-enacting-policies-to-stimulate-market-4852499.html