August 11, 2022

BEIJING — China’s real estate troubles could spill into other major sectors if the problems persist — and three particular businesses are most vulnerable, according to ratings agency Fitch.

Since last year, investors have worried that Chinese property developers’ financial problems could spread to the rest of the economy. In the last two months, many homebuyers’ refusal to pay their mortgages have brought developers’ problems to the forefront again — while China’s economic growth slows.

“If timely and effective policy intervention does not materialise, distress in the property market will be prolonged and have effects on various sectors in China beyond the property sector’s immediate value chain,” Fitch analysts said in a report Monday.

Read more:

https://www.cnbc.com/2022/08/12/heres-where-chinas-real-estate-troubles-could-spill-over-.html