Logan Wright, an expert at Rhodium Group, said that in the next few months the situation in the Chinese real estate market may improve, but for this it will be necessary to see the stabilization of real estate sales and greater access to funds within China.
Wright said that a further drop in real estate sales in China will increase financial pressure on developers, and it is not possible to compensate for this problem by political measures alone, given that sales amount to trillions of dollars.
Recently, the situation in the Chinese real estate market has been a cause for concern among market participants, while yesterday Fitch downgraded the ratings of Evergrande and Kaisa to "limited default" after the companies failed to repay their debts on time.
Problems in the real estate market are also putting pressure on the growth prospects of the economy, and Wright said that the main focus of the market will be on the annual Central Economic Working Conference of China, during which steps to stabilize the real estate sector and the economy can be discussed.