2023-08-30 20:19:59
The boom in the real estate sector […] is a key component of the “Chinese economic miracle”, ”estimates the French Treasury. STR / AFP
DECRYPTION – From growth engine to systemic risk, the sector is today a veritable sword of Damocles for China.
Too big a leap forward. Exhausted by forty years of immoderate growth, Chinese real estate is coming to an end. Two of the giants of the sector, Country Garden and Evergrande, are forced to kneel down, crushed by abysmal debts. These twilights revive fears of seeing the pillar of the Chinese economy collapse. Because real estate, in the broad sense, represents nearly 30% of the country’s Gross Domestic Product. The magnitude of the fears is commensurate with the fall of the two major promoters.
On Monday, Evergande’s return to the stock market ended in bitter failure. In one day, the action plunged 87%. Seventeen months after the suspension of its quotation for non-publication of the results, the health of the quarterly accounts finally presented last Sunday did not convince. And for good reason, remains a gargantuan debt of 328 billion dollars. A situation which forced the group to postpone the meeting with its creditors in extremis to restructure…
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