Markets The Contradictions of Chinaâs Real-Estate Boom Canât Keep Going
Real-estate developers provide much-needed economic activity and land purchases. A squeeze on their balance sheets by the government would have impacts on international markets.
By Dec. 16, 2020 4:32 am ET
Chinaâs real-estate developers contributed significantly to its recovery this year, revving up sales and construction activity as the worldâs second-largest economy began to shrug off the economic effects of the pandemic.
But it isnât clear whether they will be able to repeat the same act next year. Markets that are sensitive to the conditions in the sector, especially industrial metals like steel and copper, may begin to reflect that.