China's Real Estate Crisis Continues

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China's Real Estate Crisis Continues
Photo: Heiko Junge/NTB Scanpix/TT

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The purpose is to assess how much government support the company may need to avoid being forced to stop making payments.

Another company – the Hong Kong-based New World Development – is negotiating to defer payment of certain loans.

The crisis in China has knocked out a number of players. The most well-known is the property developer Evergrande, which has had acute problems since 2021 and is now in liquidation.

In January this year, the company's debts were estimated to be equivalent to approximately 3,600 billion kronor.

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2022 was a particularly tough year on the Chinese property market, but it has been slightly less bloody since then after the authorities implemented enormous support measures.

The new warning signs can fuel the market's fear that the crisis will spread internationally.

Although the latest measures by the government have slowed down the decline, it may take another year or two before the sector has hit rock bottom, says Leonard Law, analyst at the credit analysis firm Lucror Analytics.

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By TT News AgencyEnglish edition by Sweden Herald, adapted for our readers

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