China Developers Face ‘Significant’ Liquidity Woes – and more of today’s China Real Estate Links | July 23, 2012

Here is a list of the day’s latest China real estate news collected from around the web:

• China Developers Face ‘Significant’ Liquidity Woes, KPMG Says

  Chinese developers face “significant liquidity issues” and rising funding costs after regulators curbed borrowing through trust companies and property sales fell, according to KPMG LLP.
  Although there are “indications” that restrictions on real estate trusts may ease soon, the impact is unclear with investor sentiment changing, according to a KPMG report entitled Mainland China Trust Survey 2012. The report, emailed yesterday, didn’t elaborate on what the indications are.

• China Q2 Real Estate Loans Rebound with Sales

  China’s bank lending to the real estate sector rebounded between April and June on recovering property sales and changing market sentiment, data from the central bank showed on Thursday.Chinese banks lent 322.6 billion yuan ($50.64 billion) to property developers and home buyers in the second quarter, up 20 percent from the year earlier period.

• Newcomers May Find China’s Retail Market Saturated

  By noon on Monday, a dozen shoppers were milling about the newly opened Marks & Spencer Plc department store on Huaihai Road in Shanghai.
  Wearing loose-fitting shirts and drowsy, listless looks, the shoppers, mostly middle-aged women, were outnumbered by the shop assistants inside. Rather than peruse the clothes and accessories put carefully on display, most of them appeared to have entered the store to bask in free air conditioning.

• China Real Estate Stock Rally Starts to Wobble

  This year’s rally in stocks and bonds of mainland Chinese real estate developers looks set to peter out, analysts say, as valuations have become less attractive and hopes have dwindled for any roll back of steps taken to dampen home prices.The tide appeared to start turning during the past week, though China’s property sector remains among the best performers across Asia this year, easily outpacing benchmarks.

This list is updated daily, so tune in again tomorrow for more up to date information, or subscribe to our daily email news digest to get this delivered to your mailbox.