China's Economic Slump Deepens as Home Sales Plummet and Tech Earnings Disappoint
China's economy is struggling to recover, with its housing market and stock market showing no signs of improvement. Home sales for one of its largest developers have crashed, while tech earnings have disappointed, leading to a decline in consumer confiden
China EconomyHousing MarketStock MarketTech EarningsCountry GardenReal Estate NewsSep 05, 2024
The country's real estate sector has been navigating a crisis for years now, as declining demand and little stimulus from the government have overburdened indebted property firms. In August, new home sales among the 100 largest developers dropped 26.8%.
Improving sales would have been welcome news for Country Garden, as it fights off a liquidation scare. The firm is now considering a new restructuring for its yuan-denominated bonds instead, having struggled to fund delayed repayments on its debt.
Bloomberg reported that since the firm invests in smaller cities, Country Garden's downturn has been especially vicious compared to its peers its sales plummet has more than doubled the average among top builders in the first seven months of this year.
JPMorgan chief China economist Haibin Zhu told CNBC that home prices won't stabilize until 2025, if not later. The \
Frequently Asked Questions
What happened to Country Garden's home sales in August?
Country Garden's home sales crashed 57% year-over-year in August.
What is the current state of China's real estate sector?
China's real estate sector has been navigating a crisis for years now, as declining demand and little stimulus from the government have overburdened indebted property firms.
How did China's tech earnings perform in the latest quarter?
China's leading eight tech firms saw 19% EPS growth, marking the slowest quarter since 2022.
What sectors were the leading stragglers in the latest earnings season?
The real estate and consumer staple sectors were the leading stragglers in the latest earnings season.
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