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China warns of real estate developer risks = government activity report | Reuters

The government work report, released on March 5 at the opening of China’s 14th National People’s Congress (NPC), warns that risks remain in the real estate market and promotes steady development in the sector. , to prevent disorderly business expansion by developers. FILE PHOTO: An apartment building construction site in Beijing, July 2022. REUTERS/Thomas Peter

[北京 5日 ロイター] – A government work report released on the occasion of the opening of China’s 14th National People’s Congress (NPC) warns that risks remain in the real estate market and promotes steady development of the sector, encouraging developers to It was written that it would prevent disorderly business expansion.

Premier Li Keqiang said risk aversion to property developers was one of the government’s priorities this year as buyers remained cautious. In his activity report, he said, “There are more potential risks in the real estate market, and some small and medium-sized financial institutions are at risk.”

He also pledged to solve the youth housing problem and support the needs of homebuyers.

Analysts at the Yiju Institute of Knowledge Center said, “There are many problems with real estate buyers, such as the fear that home buyers will stop repaying mortgages, the inability to hand over pre-sold homes, and the default of developers. “Property developers face a lot of risks and this shows a lack of spending power and confidence.” “Only when consumer demand for housing rises will other real estate problems, such as the financial risk of big housing companies, really be resolved,” he said.

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