China developers gloomiest in nearly a decade
CHINA’S developers are at their gloomiest in eight years, adding risks to the world’s second-largest economy as it faces pressure from a potentially protracted trade war.
A sentiment index of the property market compiled by Standard Chartered dropped to 38.5 in August, the lowest since it started in 2010.
The readings are based on a semi-annual survey with 40 senior managers of property firms in nine cities, ranging from the metropolis of Shanghai to the little-known inland town of Huangshi in Hubei province.
Deteriorating financing conditions, housing purchase curbs and the looming property tax, which may hurt the long-term prospects of the sector, all contributed to the index’s decline, Standard Chartered economists Shen Lan and Ding Shuang said.
China’s real estate sector has been the most robust pillar of investment this year as the economy slows; if it also falters, then that threatens the nation’s resilience at a time when the trade war with the US is intensifying.