China’s central bank to help property crisis

By Catrin Jones02 August 2022

China-based property developer Evergrande is reported to have failed to deliver a preliminary debt restructuring plan that it had previously promised would be complete by 31 July.

The People’s Bank of China (Photo: Adobe Stock)

The news follows reports that the country’s property sector is currently facing difficulty, dealing with a growing mortgage boycott as buyers are refusing to make their mortgage repayments.

Developers have had to suspend construction on millions of apartments nationwide over the past year – leaving a significant number of stalled projects and unfinished homes.

It has been reported that China’s central bank, the People’s Bank of China, will initially lend property developers a trillion yuan (US$148 billion) to help improve the situation but there are growing concerns that the unfinished projects will have little to no value as a result of the debt many property developers in the country have.

At the start of the year, China had predicted Gross Domestic Product (GDP) growth of 5.5%. However, after further lockdowns, which led to a halt in manufacturing and prompted supply chain issues across the globe, the country’s economy has seen only a 0.4% year-on-year growth in the second quarter of 2022.

The International Monetary Fund recently predicted that China’s economy would grow by 3.3% in 2022, a significant drop from the 8.1% growth it enjoyed in 2021.

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, World Construction Week Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Longer Reads
Interview: Sunward’s global access goals
OEM’s general manager explains the reasons behind its shift into access equipment manufacturing 
How construction firms can unlock the value of AI
Rob Smith, CTO of cloud services provider Creative ITC, explains how as-a-Service IT models are enabling IT leaders to unlock greater return on investment
Skid steers and tracked loaders: the latest electric models
Manufacturers are continuing to invest in electric powered equipment
CONNECT WITH THE TEAM
Andy Brown Editor, International Construction Tel: +44 (0) 1892 786 224 E-mail: andy.brown@khl.com
Simon Kelly Sales Manager Tel: +44 (0) 1892 786 223 E-mail: simon.kelly@khl.com
CONNECT WITH SOCIAL MEDIA