Chinese developer misses major bond repayment of $179 million

Overbuilding during the 2008-2009 Great Recession led to an overstock of housing and office space in Chinese "ghost cities". Now China faces a long term decline in its population, reducing demand for new housing at an accelerating rate. The Chinese government makes confident sounding public statements on the matter but in private you have to know that Xi Jinping and other members of the Politburo Standing Committee and leaders of the relevant ministries are sucking air through their teeth as these missed bond payments multiply. The snowball is rolling .........

Whatever your opinion of China, the sheer scale of the projects that have been undertaken has been astounding. But if you do things at that scale, and you get it wrong - failing to manage a debt bubble - you have a fearsome problem.

Beijing is facing the possibility of a sector-wide crash with considerable consequential damage.

There is no way of knowing whether they have the capacity to manage anything approaching a soft landing, given the scale of the debts. They probably don't know themselves. For domestic political reasons, they may have to do whatever it takes to limit damage, and that may have consequences for Chinese state finances across the board.

This may be a rather big splash at a time when the global economy is quite vulnerable.

I feel bad for the honest workers involved that are destroyed by this failure.

I do not feel bad by for the huge companies and speculators who probably won't lose any of their personal wealth over this.

Regardless, we'll never get the truth from the CCP-controlled media and neither will investors.

By China's own estimate, it now has more than 130,000,000 empty, unfinished apartments sitting in limbo.

But I'm sure they'll just get some peasants (who make, on average, less than USD 5000 a year) to pay for these ridiculously price-inflated and shoddily-contructed housing, right?

Sure!

They should ask Japan how best to recover from an asset price bubble burst... oh wait...

Reckless

If I could telework I will take one of those empty apartments at a considerable discount.

Seriously? You want to live in a ghost city under CCP rules?

Interesting to see keyboard warriors are busy discussing the collapse of Chinese property market, while one of Japan's largest real estate companies Daiwa house group bought a piece of land at a high price (45 billion Japanese yen)in Suzhou,China last week.

Interesting to see keyboard warriors are busy discussing the collapse of Chinese property market, while one of Japan's largest real estate companies Daiwa house group bought a piece of land at a high price (45 billion Japanese yen)in Suzhou,China last week.

What us interesting about this?

"By China's own estimate, it now has more than 130,000,000 empty, unfinished apartments sitting in limbo"

ok thats not a problem, the UK has thousands of migrants that come here to get a house and benefits or just to to start a new life, we could send them there to these empty hoses and flats.

It's beginning!

Sunshine 100? More like Thunderstorm 1 Billion.

If I could telework I will take one of those empty apartments at a considerable discount.

Seriously? You want to live in a ghost city under CCP rules?

Exactly my thought too.

Interesting to see keyboard warriors are busy discussing the collapse of Chinese property market, while one of Japan's largest real estate companies Daiwa house group bought a piece of land at a high price (45 billion Japanese yen)in Suzhou,China last week.

I see. Japanese real estate firms have never misjudged the market before. Right?

TISHMAN SPEYER another international property developer bought a piece of land in Shanghai for nearly 100 billion Japanese yen outbidding local buyers on November 17.

“I see. Japanese real estate firms have never misjudged the market before.”

Japanese real estate firms like Daiwa house group has been doing business in China for at least 10 years they are providing good quality homes and services to the Chinese customers and of course make a lot of money and they use the money to better serve their customers back at home in Japan that’s truly a win win situation.