Investors can expect most Chinese real estate agents to avoid paying bonds, but problems in the retail sector have not yet spread to other businesses, the analyst told Today Two.

The financial crisis for Chinese real estate companies began a few months ago when Evergrande and other developers tried to repay their loans. Evergrande avoided the turmoil when it allegedly sent interest payments last week.

“We can see a lot of mistakes … in these developers,” said Bo Zhuang, chief investment officer at Loomis Sayles, “Street Signs Asia.”

Analysts say debt growth should be slow, and Chinese officials are following laws that have weakened part of the land sector.

He said real estate sales in China stopped falling two weeks ago, “a good sign.” That’s what made the analogy of one solution “interesting” to investors, he added.

Future of China’s property sector

Chinese real estate agents form an integral part of the Asian pay market.

The companies are growing rapidly after years of borrowing. The Chinese government has stepped up its efforts to stem the tide of corruption within the sector, such as banning loans from manufacturers and enforcing lending rules.

“From the market, all the top Chinese brands passed by this car. It works well,” Zhuang said.

In particular, China’s finance department has pushed back even the housing crisis, he added. The researchers explained that the bonds offered by the banks had seen “no significant change” in interest rates but had not yet reached a certain level.

China’s rehabilitation department will look different in the next five years, Zhuang said.

He said the government will be involved in real estate development and development. This means that the private equity market will decline, and the impact will affect or merge with other companies, analysts added.

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