Covid Hammers China’s Developers by Starving Them of Cash
- Home sales fell the most since debt crisis intensified in July
- Builders need cash from sales to fund wall of bond payments
Residents take part in a round of Covid-19 testing during a lockdown in Shanghai, China, on April 18.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China’s worst Covid-19 outbreak in two years is prolonging the country’s property slump, starving stressed developers of cash and weighing on the economy.
Only weeks ago, things were looking up for the battered real estate sector after the government pledged to prevent a disorderly collapse. Now the industry is contending with lockdowns in key cities including Shanghai that are keeping prospective homebuyers away.