Property Risks ‘Overshadow’ China Economic Outlook, OECD Says

Property risks are “overshadowing” China’s economic outlook as a slowdown in sales threatens to trigger developer collapses, the Organization for Economic Cooperation and Development said.

“While the exit of small developers would not pose a problem, the failure of large promoters could put some bank lending at risk, perhaps triggering negative chain reactions,” the Paris-based OECD said in a report yesterday. “A key risk is an overly quick liquidation of unsold property.”