More than two years on, the crisis has deepened as confidence in both housing and capital markets dried up, further squeezing developers’ liquidity.
Beijing has rolled out a range of support measures in recent months to revive the sector, which makes up about a quarter of the world’s second-largest economy.
Some analysts, however, say more measures are needed.
In a research note on Friday, UBS said property sales growth in major cities likely stayed weak in September, suggesting a limited rebound of sales despite more supportive measures to ease the property crisis.
The market is closely watching whether Country Garden, which owns projects across the country, can manage to dodge default again by making payments at the last minute.
In September, Country Garden won approval from its onshore creditors to extend yuan bond payments, and in the same month made coupon payments on the offshore markets in the last hours of the end of a grace period.
But the developer has not yet paid a US$15 million coupon due Sep 17 and another US$40 million coupon due on Sep 27, both of which have 30-day grace periods.
Source: CNA
