China Takes Steps to Revive Housing Market, Ease Debt Burden
By 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.[0] 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.[1] 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.[2] 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.[3]
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
