Source: CNBC —
BEIJING — Chinese property developers’ cash flows — a sign of the companies’ ability to stay afloat — shrank this year after steady growth over the last decade, according to Oxford Economics.
Developer cash flows through July are down 24% year-on-year on an annualized basis, according to analysis from the firm’s lead economist, Tommy Wu.
That’s a sharp slowdown from growth for nearly every year since at least 2009, the data showed. Total funding as of July was 15.22 trillion yuan ($2.27 trillion) on an annualized basis, versus 20.11 trillion yuan in 2021.
The drop comes as credit demand in China missed expectations in July, and property developers’ struggles drag on.
About two years ago, Beijing started to crack down on developers’ high reliance on debt for growth. Notably, Evergrande defaulted late last year. Other developers like have also defaulted, despite appearing to have healthier balance sheets.
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