China's Latest Property Measures Likely Aimed at Protecting Homebuyers
Dow Jones
Sep 02
0730 GMT - China's latest policy measures for the property sector appear to be aimed at increasing transparency and protection for homebuyers, say S&P Global analysts in a report. Authorities are attempting to strengthen the trust of homebuyers by enforcing stricter oversight of presales capital and unfinished projects. The government is now prioritizing the sale of completed homes, and shifting the emphasis away from presales, which have long been the prevailing model for property sales in China, they say. "We believe the government's targeted efforts address the root causes of instability: Overreliance on presales, excessive debt leverage at developers, and the misalignment of incentives between local governments, developers, and homebuyers," says S&P Global Ratings credit analyst Edward Chan.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.