Moody's Talks - Emerging Markets Decoded cover image

Stress in China’s property sector has potential knock-on effects across multiple sectors

Moody's Talks - Emerging Markets Decoded

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Credit Stress and Potential Spillover Effects on China's Property Sector

This chapter explores the credit stress faced by a major borrower in China's property sector and its potential spillover effects on poverty and financial markets. It discusses concerns about the financial health of other developers, payment default risk, increased regulatory control, and the contagion effect on smaller financial institutions and liquidity situation of other developers.

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