Chinese policymakers faced with 'moral dilemma' to avoid property crisis contagion

Residential sales to fall 10% next year

clock • 4 min read
Chinese real estate developers are heading for a “tough” 2022
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Chinese real estate developers are heading for a “tough” 2022

Authorities in China are faced with a “moral hazard dilemma” as they manoeuvre to contain the economic fallout from the country’s evolving real estate crisis. Still, a Lehman Brothers-like scenario sparked by Evergrande is seen as “unlikely”.

Nevertheless, Chinese real estate developers are heading for a "tough" 2022, according to recent analysis by S&P Global Ratings. In a worst-case scenario, one third of China's developers may see their...

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