The world's most heavily indebted property developer, China Evergrande Group, on Thursday filed for protection under Chapter 15 of the U.S. Bankruptcy Code to shield its assets from creditors, again raising concerns among global investors and businesses about the future of China's real estate market and related businesses. How dire are things in China's property sector? Major developments have taken place in recent weeks. Here is a selection of stories that will help you catch up on the latest.
China Evergrande files for bankruptcy protection in New York
Evergrande has filed for bankruptcy in New York to protect its U.S. assets from creditors as it undergoes restructuring. The move comes as concerns grow over indebtedness among property developers in China and the potential for their financial woes to slow growth in the world's second-largest economy. Read more.
Evergrande shows China property 'zombification': 5 things to know
"Zombification" is increasing among property developers in China. Financially struggling companies are discontinuing construction projects before completion. How significant is the property crisis for the world's second largest economy? What is the policy stance of Beijing countering this problem? Here are five things to know about the Evergrande property crisis. Read more.
ASEAN markets grow cautious as China's property crisis worsens
Southeast Asian shares fell on Friday as investors' confidence chilled in light of fresh turmoil from the Chinese property market, amid fears of a further slowdown in the second largest economy that could weigh on the region's trade and tourism. Read more.
China proposes longer trading day, easier buybacks to end stock slump
China's securities regulator is considering measures to revitalize its capital markets, including extending stock trading hours and easing buyback rules, in a bid to allay investor concern amid a flagging real estate sector. One proposal calls for extending the trading day for stocks beyond the current hours of 9:30 a.m. to 3 p.m. Read more.
China developer's profit falls 93% in fresh blow to property market
China's property sector took another hit on Friday, as mainland developer Soho China disclosed a sharp fall in its profit and outlined its dire financial situation just hours after China Evergrande Group filed for bankruptcy protection in a New York court. Read more.
China home price survey shows wider fall amid Country Garden woes
China is experiencing a broad decline in residential housing prices. In July, new residential sale prices dropped from the previous month in 70% of 70 major cities covered in a survey. Along with concerns over the country's slowing economy, anxiety over the shaky finances of some real estate developers, including Country Garden, is weighing on market sentiment. Read more.
China real estate slump deepens with 8.5% investment drop
Chinese data released this week revealed that total investment in real estate development for the January to July period fell 8.5% from a year earlier to 6.77 trillion yuan ($943.5 billion). The steep decline comes as some developers scramble for new funds. Read more.
Evergrande unit probed by Chinese securities watchdog
Days before Evergrande filed for bankruptcy, its unlisted domestic property arm, Hengda Real Estate, issued a statement saying China's securities watchdog had opened an investigation into the company over allegations of a possible breach of disclosure rules. Read more.
China's growth model under strain, but stimulus faces high hurdles
China's depressed property market is undermining the country's economic growth model. However, strained local government finances and a weak yuan have made authorities hesitant to embark on the sort of massive stimulus it used to prop up the economy after the global financial crisis. Read more.
Investors pulling out of Chinese stocks at faster pace
In the first 14 days of August, a total of around $3.7 billion was pulled out of Chinese stocks. Investors are retreating from the Chinese stock market amid growing fears about the prospects for the country's economy, especially as the health of the real estate sector comes into question. Read more.
