Chinese real estate investments face mounting debt concerns

Investors are now seeking to get repaid on their investments

TRD NATIONAL /
Mar.March 03, 2019 09:00 AM

Debt is a pressing concern for China (Credit: Pixabay)

As half-finished real estate projects span throughout parts of rural China, investors are seeking to collect on their debt payments.

Investors bought debt in areas outside the major Chinese cities are now growing worried about getting their money back amid a weakening economy and tighter regulations on bank lending, according to the Wall Street Journal.

Local governments in China along with more than 2,000 financing companies have trillions of dollars of debt that have now come due on these projects. And some of these local governments are having trouble coming up with the money, the Journal reported.

In once instance, the Journal said the rural county of Sandu owes a projected two billion yuan ($297.6 million) in payments in 2019, almost three times the county’s annual revenue.

Overall, debt remains a pressing concern for the country. Official figures estimated the total of local and central government debt in 2017 was 29.95 trillion yuan ($4.457 trillion) — almost 36 percent of the entire economy. [WSJ] — Keith Larsen


Related Articles

arrow_forward_ios
Rendering of Sailboat Bend II

Affordable housing project in downtown Fort Lauderdale lands $27M loan

Rendering of the Brickell hotel development, Tony Cho and Robert Finvarb

Finvarb and Cho land construction loan for mixed-use hotel near Brickell City Centre

State report finds open gas valve fueled building explosion at Plantation shopping center

State report finds open gas valve fueled building explosion at Plantation shopping center

Bayside Marketplace is planning another high-rise entertainment venue with a view

Bayside Marketplace is planning another high-rise entertainment venue with a view

Construction of downtown Hollywood high-rise may start soon

Construction of downtown Hollywood high-rise may start soon

South Florida firm, partner acquire Tampa office building for $29.4M

South Florida firm, partner acquire Tampa office building for $29.4M

Developer borrows $105M, breaks ground for mixed-use Flagler Village project

Developer borrows $105M, breaks ground for mixed-use Flagler Village project

Moishe Mana plans mixed-use project with logistics theme next to airport in Panama

Moishe Mana plans mixed-use project with logistics theme next to airport in Panama

arrow_forward_ios