Chinese real estate developers has this year so far remain burdened with slowdown in prices, property sold and bankruptcies.
During boom time China saw rise in shadow financing, dollar financing and excessive leverage in the property market, which has come back to haunt the developers this year harsher than ever as stronger dollar pose challenge for property makers.
- Bankruptcies rose among property developers. Cement Shen's "Peach Blossom palace" filed for $563 million bankruptcy. Kaisa group debt default and restructuring involves $10 billion.
- Property investment growth eased to 8.5% in January to March from a year earlier, according to National Bureau of Statistics (NBS), dropping from 10.4% in the first two months of 2015. Growth is now close to 2009 low of 8.3%.
- Property sales volume dropped 9. % from the year-earlier period, narrowing from a 16.3% decline in January to February.
Demand has been slowing both for houses and office space.
- Demand for floor space designated for commercial use has been slowing in China July last year. Chart is attached for detailed explanation.
Chinese development of Asia Infrastructure Investment Bank (AIIB) is undoubtedly a positive move for the economy over longer term, however current massive rally in stock market may be designated as bubble without strong fundamental in place.


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