China Crisis Wipes Out $90 Billion of Developer Market Value
- Builders’ shares weakest since 2012, junk bonds at record low
- Sector outlook dim as Beijing prioritizes appeasing homeowners
Residential buildings under construction in Shanghai, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Chinese developers have suffered a meltdown of at least $90 billion in stocks and dollar bonds this year, with a bursting housing bubble and an intensifying debt crisis threatening to inflict even more pain.
The builders have lost about $55 billion in share value since 2022 began, according to a Bloomberg Intelligence stock gauge. The sector’s dollar notes have fallen more than $35 billion, show calculations based on a Bloomberg bond index, the constituents of which can change over time. The wipeouts have pushed developer stocks down to levels not seen in a decade and junk dollar notes to record lows.