Chinese imports are not rising to the rescue of global demand this downturn as they did in 2008-2020. #tappedout. China Beige Book does on-the-ground analysis, which is updated in this segment.
Shehzad Qazi, managing director of China Beige Book (CBB) International explains how CBB has been able to gauge China’s economic performance without relying on official figures. Shehzad gives an overview of key metrics of China’s Q2 economic data and provides his assessment of the health of the Chinese housing market and the tech sector. Here is a direct video link.
Meanwhile, the Chinese property bubble continues to deflate with increasingly volatile contagion impacts on lenders, commodities, debt and property prices internationally. Heads up Canada, see Chinese property buyers across 22 cities refuse to pay mortgages:
Buyers of 35 projects across 22 cities have decided to stop paying mortgages as of July 12 due to project delays and a drop in real estate prices, Citigroup Inc. analysts led by Griffin Chan wrote in a research report distributed on Wednesday.
The payment refusals underscore how the storm engulfing China’s property sector is now affecting the country’s middle class, posing a threat to social stability. Chinese banks already grappling with challenges from liquidity stress among developers now also have to brace for homebuyer defaults.
Now is “a critical time for social stability,” said Chan, adding that “the forgoing of down payments may bring social instability.”
A drop in home values hasn’t helped. Average selling prices of properties in nearby projects in 2022 were on average 15% lower than purchase costs in the past three years, according to Citigroup’s research. The contagion is spreading to banks.
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