China’s vast real estate industry is recovering from a slump triggered by tighter debt controls, a deputy central bank governor said Friday, after a wave of defaults by developers rattled global financial markets.
Pan Gongsheng mentioned Evergrande Group, the global industry’s most heavily indebted developer, but gave no update on its government-supervised efforts to restructure 2.1 trillion yuan ($305 billion) in debt to banks and bondholders.
“Market confidence is recovering. Transaction activity in the real estate market has increased,” said Pan at a news conference ahead of the meeting of China’s legislature. “The financing environment, especially for high-quality enterprises, has improved significantly.”
Pan gave no indication Beijing planned significant changes in its debt controls, known as “three red lines.”
China’s economic growth slid in mid-2021 after regulators who worry debt levels are dangerously high blocked Evergrande and other heavily indebted developers from borrowing