• Escalating trade conflict with the U.S. and mounting debt among domestic developers, combined with unprecedented deleveraging, have prompted many critics to claim that China’s property market is entering choppy waters.
  • The reality is far more nuanced. While some sectors may endure some short-term discomfort, the market is resilient and likely to emerge unscathed from the current turbulence.
  • Recent government measures, such as those which open up the financial sector to qualified foreign investors and relax FDI restrictions in selected industries, are likely to offset much of any negative impact.
  • This ViewPoint by CBRE Research identifies the likely consequences of escalating U.S.-China trade conflict and rising debt among Chinese developers and explains why a major downturn is highly unlikely.