New research by Bloomberg shows China’s property market is most at risk from China’s ongoing tightening of credit, with builders facing a rising threat of default.
Bloomberg’s Default Risk model reads that China’s developers have a 0.87% average probability of default in the next year – three times the figure in the tech industry.
Around three-quarters of developers are experiencing a rise in default risks, the data said.
Debt linked to China’s $22 trillion property market has ballooned in the past decade as demand for land continued to skyrocket attracting the attention of investors. Chinese building firms have amassed a total of RMB 625 billion ($96 billion) in outstanding bonds through 2019.