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China’s property slump is proving to be more severe than official data shows, as new home prices have seen their largest monthly decline in a month since 2015.

The number of new construction projects from January through October fell by 7.7% compared with a year ago.

In recent months, the country’s real estate market was shaken by Evergrande, a giant in property. Evergrande is struggling to pay its massive debts.

China also has been affected by major power cut and Covid cases.

China’s biggest drop of 0.2% in home prices since February 2015 was October, which saw the largest fall in property values in China.

This is also the first decrease in home prices since March 2015

As major property developers struggle with massive debts, sentiment in China’s real estate market has been shaken.

As Evergrande, a real estate company, continues to be concerned about its future, intense scrutiny has been placed on the industry.

Last week, Evergrande, which is saddled with around $300bn (£223bn) of debt, avoided defaulting on overdue interest payments of $148m.

A 5.7% stake in HengTen Networks Group was sold for $145m just days before a grace period of 30 days expired.

Evergrande, a car manufacturing business, sold Protean, a UK-based electric motor company Protean last week for an undisclosed amount.

Others Chinese home-builders have had similar difficulties in finding enough money to pay back their debts.

Fantasia’s shares fell by half last week as it stated that there were no guarantees it would be in a position to pay its financial obligations after an October missed payment of $205.7 million.

After a business that had not received a payment for a wealth management product, the trading of Kaisa Group shares and three of its units in Hong Kong was stopped earlier in the month.

Some international investors are concerned that the debt crisis facing Chinese property giants could cause a significant impact on global financial markets.

However, recent weeks have seen a few high-profile individuals help to calm these fears.

Haruhikokuroda, Bank of Japan governor, stated Monday that China’s property woes are unlikely to create a global panic because there is relatively little money owed outside China.

We don’t think China’s problems with property will have an impact on Japan’s financial system or economy. Kuroda said that there is no risk for the woes to trigger a major, global shock.


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