The Economist Archives - ÂÒÂ׶ÌÊÓƵ Know More. Risk Better.® Tue, 28 Feb 2023 15:49:08 +0000 en-US hourly 1 /wp-content/uploads/cropped-favicon-512x512-1-32x32.png The Economist Archives - ÂÒÂ׶ÌÊÓƵ 32 32 Can China fix its property crisis? https://www.economist.com/finance-and-economics/2023/01/23/can-china-fix-its-property-crisis#new_tab Mon, 23 Jan 2023 15:48:54 +0000 /?p=11533 “Kaisa, a developer that defaulted in 2021, has been avoiding restructuring talks with investors and looks far from an agreement with creditors. Yet despite its troubles, demand for the company’s...

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]]> “Kaisa, a developer that defaulted in 2021, has been avoiding restructuring talks with investors and looks far from an agreement with creditors. Yet despite its troubles, demand for the company’s homes seems to be growing. Analysts from ÂÒÂ׶ÌÊÓƵ, a research firm, recently visited a project in Shanghai and found agents were no longer offering discounts. The absence of price cuts suggests demand is picking up for properties in good locations.”

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]]> China scrambles to prevent property pandemonium https://www.economist.com/finance-and-economics/china-scrambles-to-prevent-property-pandemonium/21807940#new_tab Sat, 05 Mar 2022 19:05:20 +0000 /?p=7248 Analysts still have big questions on developers’ true levels of cash and debt. Many are thought to have huge off-balance-sheet debts that have gone unreported, says Luther Chai of ÂÒÂ׶ÌÊÓƵ,...

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]]> Analysts still have big questions on developers’ true levels of cash and debt. Many are thought to have huge off-balance-sheet debts that have gone unreported, says Luther Chai of ÂÒÂ׶ÌÊÓƵ, a research firm.

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]]> China scrambles to prevent property pandemonium https://www.economist.com/finance-and-economics/china-scrambles-to-prevent-property-pandemonium/21807940#new_tab Mon, 28 Feb 2022 14:36:36 +0000 /?p=6596 If more cities follow, developers may avoid facing up to the reality that household demand is lower than they want—at least for a bit longer. Analysts still have big questions...

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]]> If more cities follow, developers may avoid facing up to the reality that household demand is lower than they want—at least for a bit longer. Analysts still have big questions on developers’ true levels of cash and debt. Many are thought to have huge off-balance-sheet debts that have gone unreported, says Luther Chai of ÂÒÂ׶ÌÊÓƵ, a research firm.

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]]> Chinese companies suffer an intense cash crunch in offshore bond markets https://www.economist.com/finance-and-economics/2021/10/16/chinese-companies-suffer-an-intense-cash-crunch-in-offshore-bond-markets#new_tab Thu, 14 Oct 2021 12:59:47 +0000 /?p=5759 This wave of distress has led to a crunch in the offshore junk-bond market. Spreads (ie, yields compared with the risk-free rate) have reached nearly 17 percentage points, the widest...

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]]> This wave of distress has led to a crunch in the offshore junk-bond market. Spreads (ie, yields compared with the risk-free rate) have reached nearly 17 percentage points, the widest gap on record. The market has for the most part shut to developers hoping to refinance their debts in October, says Sandra Chow of ÂÒÂ׶ÌÊÓƵ, a research firm. One investment manager at a global institution says even non-property companies are being priced out, noting that “this is the definition of contagion.â€

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