Half of China Commercial Developers May Be Closed, Haitong Says
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About half of China’s commercial real estate companies may be forced to stop operating in the next three to five years as the government tightens housing-market policies, according to Yifan Hu, Haitong International Research Ltd.’s head of research and chief economist.
There are about 20,000 businesses in the industry, Hu said in a Sept. 30 interview from Hong Kong. The Chinese government said in July that it will rein in residential prices in smaller cities after it raised down-payment requirements and mortgage rates earlier this year. Hu recommends buying shares of companies tied to the public-housing industry, such as cement producers, as policy makers focus on building affordable homes.