Moody's: Chinese property developers’ liquidity stress will continue

In its latest assessment of the Chinese property sector, Moody’s Investors Service noted that liquidity stress among the country’s property developers will remain given tight credit conditions and lower sales.

Key takeaways

“More developers will meet the three red lines requirement as debt growth declines.”

“Limited funding access, slowing contracted sales, weakened controls over project-level cash dampening cash flow.”

“Refinancing risk for developers, particularly financially weak ones with material near-term debt maturities, will remain high in China.” 

Market reaction

USD/CNY was last seen trading at 6.3852, almost unchanged on the day.