Agency cuts China growth forecast on property woesEVERGRANDE ANXIETY: Fears over the real-estate giant’s collapse caused markets to tumble and are contributing to a decline in the property sectorAFP, BEIJINGFitch Ratings yesterday cut its growth forecast for China’s economy this year, citing a slowdown in the country’s colossal property sector, which is facing headwinds over faltering real-estate giant Evergrande Group (恆大集團). “Housing starts are falling and financial pressures are weighing on real-estate investment,” Fitch said in its latest report. “Residential investment directly accounts for around 10 percent of GDP, and property activity has large spillovers to other industries,” it added. A State Council meeting he chaired underlined measures to promote consumption, stabilize commodity prices, and maintain growth of foreign investment and trade. Chinese Estates said it had already sold 108.91 million shares, or 0.82 percent, of Evergrande’s issued share capital between Aug. 30 and Tuesday for HK$246.5 million (US$31.67 million).

Source: Taipei Times September 23, 2021 15:56 UTC