Research Announcement:
Moody’s — China’s property sector still faces
default risks amid weak sales and market volatility
Hong Kong, March 31, 2022 —
Β» Chinaβs property sales will decline in 2022, while market volatility will still weigh on developers’
refinancing risks
Β» Default risks remain given tight liquidity
The value of Chinaβs contracted property sales will decline in 2022 amid the countryβs tight credit
environment, but the decline will gradually narrow during the year, according to Moodyβs Investors
Service in a new report. Meanwhile, funding access will stay constrained, posing refinancing and
default risks for the sector.
National contracted sales value (three-month moving average) deceased 20.8% year-on-year in
February 2022, compared with a 20.2% fall in December 2021. This reflects a drop in both the sales
volume and average sales price.
βInvestor sentiment remains weak, as geopolitical risks have raised financial market…
