Real estate investments fall by 10% in China, a first.

A first since 1999, to be exact. According official data published this 17 January 2023, investments in real estate fell by 10% in 2022.

The latest real estate scandals that China has experienced have not helped the situation, and the soap operas continue. Evergrande continues to make headlines: PwC has just announced its retirement from its position as financial analyst of the company, pour “difference of view” [17/01/2023]; Evergrande negotiates equity swaps with its foreign creditors at the same time, unable to repay his debts since 2021 [17/01/2023]. Symbolic, the giant created by Xu Jiayin cools investment in the real estate sector, shunned by consumers.

Or, real estate is “the mainstay of the Chinese economy“, by Liu He's own admission [Liu He], vice premier of china [22/12/2022], during the China-EU business leaders and former senior officials’ dialogue. According to him, the rapid urbanization of the country will give a welcome breathing space to the sector, which represents 28% of Chinese growth, and on which countless Chinese workers depend. So that the provinces take, almost autonomously, local measures to save what can still be saved – like Henan this month [07/01/2023]. And even bustling cities like Shenzhen have returned to levels of real estate transactions of yore. 18 ans ! [daily economic news].