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Developers Face Higher Debt Repayment Pressure In 2024

CHINA PRESS
MNI (Singapore)

Developers will face higher debt repayment pressure in 2024, as the financing scale of real-estate companies shrinks for the third consecutive year, Yicai.com reported. Despite repeated support pledged by authorities and loose financing policies, the total new financing of typical developers fell by 28% y/y throughout 2023, compared to the 34% and 24% declines in 2022 and 2021, according to data by China Real Estate Information Corporation. The total principal amount of domestic and overseas bonds due in 2024 will reach CNY737.3 billion, a rise of 11.3% from 2023, data by Fitch Ratings showed. There is a risk of defaulting for a second time given the disappointing financing and sales, Yicai reported, citing analysts.

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