A combination of bearish reports from analysts and weaker than expected home sales is raising concerns among overseas investors of a credit crunch in the Chinese property sector. Official data released earlier last week showed property sales in the first quarter down 7.7% quarter-on-quarter to Rmb1.1trn (US$176bn), while analysts also pointed to evidence suggesting that companies were cutting selling prices. The double whammy of weaker sales and lower prices has raised red flags for some investors. "There are concerns about China property as bond issuers have bought a lot of land. So they are building up inventory," said a hedge fund manager. "If you are cutting prices and don't sell, that is bad."
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