Chinese property stocks are on track for a 14-year low, as stress in the sector continues to rise amid slumping home sales and deepening debt woes for major developers.
A Bloomberg Intelligence gauge of developer shares fell as much as 1.2% Wednesday, heading for its lowest closing since 2009. Times China Holdings Ltd. and China Evergrande Group led the declines.
The selling comes as Country Garden Holdings Co., China’s former top builder, is in the final hours to meet an interest-payment deadline and avert its first-ever dollar bond default. A continued slump in property investment and sales, which formed the weak spots in an otherwise upbeat set of latest Chinese economic data, highlights the need for stronger measures to contain an unprecedented housing crisis.
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