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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.

Residential buildings under construction in Shanghai, China.

Photographer: Qilai Shen/Bloomberg
Updated on

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.