The Ongoing Stress in China's Property Sector

China's property sector is facing ongoing stress and worsening conditions. Prices and sales volumes are weak, particularly for large developer Country Garden, which has a significant amount of debt. The real estate sector plays a crucial role in China's economy, and a crisis in the sector would have widespread impacts on developers, banks, finance, local authorities, and the real economy as a whole. The Chinese government has implemented measures to control the property market, including restrictions on home purchases, mortgage finance, and funding assets for developers. These measures have led to tightening funding and defaults for highly geared developers like Evergrande. Concerns over developers' credit profiles and liquidity have raised issues for the sector. The prolonged market downturn, reduced homebuyer confidence, and negative economic prospects have contributed to the crisis.