Goldman with a sensible analysis. Likewise, I do not think that this is a game changer for Chinese property. Chinese authorities do not want to change course. This is a decline management tool for the greatest ponzi ever.
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Reports of China real estate fund to alleviate construction delays. In mid July, news emerged that homebuyers in China have suspended mortgage payments on a number of pre-sold property projects due to construction delays. The root of the problem is tight financing conditions faced by the developers, including weak pre-sales and difficult credit conditions. As noted in our Asia Credit Trader, the need for a policy response to address the mortgage issues is high, as recent events highlight the uncertainties across the property and financial sectors, which could dent confidence further. On 25 July, Reuters reported that policymakers are planning to launch a real estate fund to help alleviate the financing pressures on developers.
