All of this year we have been watching the evolution of China’s “Three Red Lines” policy for large property developers. The reason why is simple. Developers represent nearly half of China’s iron ore demand. They also impact local government funding which represents another 20% of construction demand via infrastructure.
Today we have a number of stories that continue the theme of an evolving slowdown:
China’s top 100 property developers raised a total of 609 billion yuan in funding in the first half of this year, sliding 34 per cent from the same period last year and down 29 per cent from the previous six-month period, according to a report from the China Real Estate Information Corporation (CRIC), a real estate consultancy. The figure marks the lowest half-year level since 2018.
