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erienewsnow.com 11 Jan, 2022 11:30 am

Another big Chinese real estate developer might need to sell off property - Erie News Now

Another big Chinese real estate developer might need to sell off property - Erie News Now
By Laura He, CNN Business

By Laura He, CNN Business China's real estate sector is having a rocky start in 2022, as some of the country's most high-profile developers struggle to shake off a crisis that has been growing for months.Over the weekend, the Chinese media outlet Caixin reported that Shimao has put on sale all of its domestic real estate projects as the cash-strapped firm scrambles to dispose of assets.The pressure on Shimao marks yet another snag for Chinese real estate, which has been in crisis for a while.Other developers — including Kaisa and Fantasia — are also struggling with the fallout from the real estate sector turmoil, as the deepening slowdown in the property market, coupled with risk aversion among banks and investors, makes it harder for them to refinance.

This week, two major credit rating agencies downgraded Shanghai-based developer Shimao Group further into junk territory."Shimao's liquidity has significantly deteriorated — the decline is worse than we previously anticipated," said S&P Global Ratings, which cut the company's credit rating to B-.

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