After this week’s market turmoil, investors looking for what sector might fall next into Beijing’s regulatory crosshairs should direct their attention to the property industry. Recent policy signals have reinforced tightening messages, consistent with Beijing’s consumer welfare-centric policy actions in recent months. New starts, land sales, and construction momentum continue decelerating, but sales volumes continue growing. Credit events within the sector are becoming more frequent with markets heavily focused on the fate of Evergrande, China’s largest developer.
