About 1.9 trillion yuan (US$261 billion) or almost 10 per cent of property financing in China could turn sour, get worse as fallout persists: Goldman
More than US$149 billion of market value has been erased from stocks in two major Chinese indices this year as the property market cracks
Chinese banks, the biggest financiers to the nation’s beleaguered property developers, stand to pay the heaviest cost from the industry fallout after home sales slumped and debt defaults snowballed, according to Goldman Sachs.
The banking sector accounted for 75 per cent of debts owed by real estate developers totalling 19.3 trillion yuan (US$2.65 trillion) at the end of June last year, the US investment bank said in a report.
Trust firms and insurers held 16 per cent and 6 per cent respectively, with brokers and other investors making up the balance. Source: SCMP
