Chinese property bust finds a bottom, but…

Monday, 1 August 2022

It looks like we may have found a bottom in the Chinese property bust. Exhibit A is sales have stopped falling:

However, Exhibit B, developer spreads, tells us why there is little to cheer about. I can’t see much of a rebound coming. It is a structural drop as developers are shaken out.

Nor is there any more detail on the “bailout fund”. But other, less friendly, are surfacing:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.