Evergrande fuels concerns over China's housing bubbleA state crackdown on China's colossal property market has helped send Evergrande to the brink of collapseBEIJING - A state crackdown on China's colossal property market has helped send one of its biggest developers to the brink of collapse, and analysts warn the fallout could lead to the bursting of a bubble that has been building for more than two decades. China's property market has been a critical part of the economy, as Beijing's promise to improve people's living standards translated into new homes that in turn fuelled massive construction. Last year, Beijing introduced metrics to cap debt ratios called "three red lines" and tightened scrutiny over crucial funding raised by pre-sale deposits. But if it sparked wider problems, Wu said, the government would likely have to ease the three red lines and engineer a softer landing. Property sales and prices have weakened in recent months while Evergrande stole headlines, according to data analytics company China Beige Book.

Source: Bangkok Post September 28, 2021 01:52 UTC