Moody’s — China’s property sector still faces default risks amid weak sales and market volatility

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Research Announcement:

Moody’s — China’s property sector still faces

default risks amid weak sales and market volatility

Hong Kong, March 31, 2022 —

» China’s property sales will decline in 2022, while market volatility will still weigh on developers’

refinancing risks

» Default risks remain given tight liquidity

The value of China’s contracted property sales will decline in 2022 amid the country’s tight credit

environment, but the decline will gradually narrow during the year, according to Moody’s 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.
“Investor sentiment remains weak, as geopolitical risks have raised financial market…

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