China's State-Owned Developers In Crisis: Global Alarm Over Intensifying Housing Downturn
Portfolio Pulse from Piero Cingari
China's state-owned property developers are facing financial losses amid the country's housing slump, causing global concern. 18 out of 38 such builders listed in Hong Kong and mainland China reported preliminary losses in the six months leading up to June 30. The crisis has also affected private developers like Country Garden Holdings Co. and has spread to China's shadow banking sector. Major investment banks have revised their growth estimates for China downward. The Shanghai Composite and the Shenzhen Component fell by 1% and 1.75% respectively, while the iShares MSCI Hong Kong Index Fund (NYSE:EWH) and the iShares MSCI China ETF (NYSE:MCHI) have both fallen by nearly 10% month to date. Alibaba Group Holdings Ltd. (NYSE:BABA) is down 3.3% in premarket trading on Friday.

August 18, 2023 | 1:30 pm
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NEGATIVE IMPACT
Alibaba Group Holdings Ltd. (NYSE:BABA) is down 3.3% in premarket trading on Friday.
The ongoing housing crisis in China is causing a downturn in the stock market, affecting Alibaba's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 70
NEGATIVE IMPACT
The iShares MSCI Hong Kong Index Fund (NYSE:EWH) has fallen by nearly 10% month to date.
The housing crisis in China is causing a downturn in the stock market, affecting the iShares MSCI Hong Kong Index Fund.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 80
NEGATIVE IMPACT
The iShares MSCI China ETF (NYSE:MCHI) has fallen by nearly 10% month to date.
The housing crisis in China is causing a downturn in the stock market, affecting the iShares MSCI China ETF.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 90