China Property Jumps to Top Credit Risk in Bank of America Global Survey
- Shows rising worries despite government bid to boost industry
- Overtakes concerns about US, EU real estate in survey
Residential buildings under construction in Beijing, China.
Photographer: Bloomberg
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Chinese real estate is now seen as the number one source for the next global credit event among investors surveyed by Bank of America Corp., even as President Xi Jinping’s government rolls out stimulus measures to stabilize the world’s second-largest economy’s ailing property sector.
The ratio of investors concerned about China’s housing sector more than doubled to 33% in September from 15% last month, according to the latest BofA global survey of fund managers, which included 222 participants with $616 billion in assets under management. US or EU commercial real estate, which was seen as the top credit risk in the August poll, moved down to the second spot.