Financial troubles at Chinese property developers are hardly news nowadays. Hopes of more easing measures briefly lifted Chinese property stocks last month—but reality quickly set in again. Goldman Sachs says China’s urban housing demand will fall to 11 million units this year, from 18 million units in 2017. And the bank says Chinese developers have around $9 trillion of inventories—including raw land and uncompleted projects—equivalent to around 4.8 years of estimated contracted sales this year. The housing boom was a wild ride for Chinese property developers, but the hangover will be long—and perhaps has yet to reach its most painful point.

Source: Wall Street Journal August 05, 2023 13:54 UTC