China Securities Journal says in a front page editorial(via MNI, with thanks):
- Chinese property developers are facing liquidity problems
- Eexpected they will face more difficulties accessing bank loans in the second half of this year and in 2015 as banks tighten lending further
- Says many small- and medium-sized developers have had to borrow via private lending at very high interest rates
- Slowing property sales have not been able to support such high funding costs, which could result in more frequent breaks in the liquidity chain in the second half among these small- and medium-sized developers
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ps. I saw this a few days ago and haven’t gotten around to it: China’s great real-estate bust has begun, says Nomura. Its from the Wall Street Journal but its not gated.
- A combination of a huge oversupply of housing and a shortage of developer financing is producing a housing market downturn that could drive China’s GDP to less than 6% this year.
Actually, I’m glad I didn’t post it two days ago, aussie dollar bears may well have done themselves a mischief
