ASR in Bloomberg: ‘China’s Housing Rescue Too Small to End Crisis’
19th MAY. 2024
In Bloomberg’s recent piece, Tom Hancock discusses intended funding aimed at vacant properties.
Adam Wolfe from Absolute Strategy Research questions the benefit of the initiative to outstanding inventory.
“Regional authorities will be allowed to use some of their annual 3.9 trillion yuan bond borrowing quota for the new initiative — but much of that has already been earmarked for infrastructure projects.
It’s unclear if local governments will be willing to pay “anything close to what the developer paid,” for land, said Adam Wolfe, emerging markets economist at Absolute Strategy Research. “If developers have to recognize a loss on their land banks, then they might have to recognize some solvency problems, not just cash flow issues.”
