Moody's 2020 outlook for China's property.....>

CHINA: Moody's 2020 outlook for China's property sector is stable, but risks are

building amid slowing sales and tight funding

- Moody's Investors Service's outlook for China's property sector over the next

12 months is stable, driven by largely flat national sales and healthy inventory

levels. "However, credit risks are mounting as sales growth slows and funding

conditions remain tight," says Cedric Lai, a Moody's Vice President and Senior

Analyst. "Weaker demand in lower-tier cities and the high base of comparison in

2019 will weigh on sales growth in 2020," says Danny Chan, a Moody's Assistant

Vice President and Analyst. "We further expect the central government will

maintain current tight measures over the sector, with the aim to maintain stable

property and land prices." Nevertheless, local governments will have the

flexibility to adjust the control measures based on local market conditions, so

long as they remain in line with the central government's general policy

direction. Moody's conclusions are contained in its just-published 2020 outlook

for the Chinese property sector, co-authored by Lai and Chan.

- Link: https://tinyurl.com/vuf36q7