Chinese real estate developers are staring at enormous amounts of debt maturing this year, at a time when property sales have slowed and traditional borrowing markets remain closed off following Beijing’s campaign to rein in borrowing in the sector.
According to Refinitiv data, Chinese real estate developers have $117 billion worth of debt maturing in 2022, with $36 billions of those denominated in dollars.
The slowdown in the sector further pressured developers, with property investments in December falling at the fastest pace since early-2020, clouding the country’s outlook despite a robust headline economic growth figure.
China Evergrande Group has been struggling to repay more than $300 billion in liabilities, including nearly $20 billions of offshore bonds deemed in cross-default by ratings agencies last month after it missed payments.
Their worsening credit conditions have hit equity and bond prices of even the largest developers in recent months.
A 3.125per cent October 2025 bond issued by China’s biggest developer by sales, Country Garden, has fallen about 17per cent this year to 73 cents as of Tuesday.
According to Refinitiv data, the developers face debts worth $27 billion coming due in the first quarter of this year, and $31 billion in the second quarter.
Source: Reuters
