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China property companies face major debt squeeze in Q1

Policy easing is yet to have an impact as sales remain low

Under-construction apartments in the Shekou area of Shenzhen, China. In the first 19 days of January, average daily new home sales in 50 major cities dropped 26.8% year-on-year, analysts say.    © Reuters

China's troubled property companies face a tough first quarter, as they have to pay back a record amount of offshore bonds while new home sales are depressed and finding financing remains a challenge, analysts say.

In the first three months of 2022, developers face obligations to repay 117.7 billion yuan ($18.5 billion) in maturing offshore bonds, a record quarterly high, analysts at brokerage Huatai Securities wrote in a report last week.

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