China Declares No Bailouts for Insolvent Property Developers

In a firm stance against the real estate crisis, China's housing minister emphasizes bankruptcy and restructuring for failing developers.

China's housing minister, Ni Hong, states that insolvent real estate developers must face bankruptcy or restructuring, rejecting any government bailouts.
The crackdown on the property sector's debt began in 2020, leading to a significant downturn in the $5 trillion industry.
Evergrande and Country Garden, among other developers, have faced severe financial distress, with Evergrande's debt trading at less than one cent on the dollar.
The real estate sector's slump has prompted the IMF to downgrade its growth estimates for the Chinese economy.
Authorities aim to stabilize the market and ensure the delivery of property projects, prioritizing the interests of homebuyers over developers.