China's property distress sours steel sector in warning sign for economy

FILE PHOTO: A Kaisa sign is seen in front a Chinese flag at a construction site being developed by Kaisa Group Holdings, in Shanghai, China, December 7, 2021. Picture taken December 7, 2021. - Reuters

BEIJING, Dec 19 (Reuters): Debt problems at a major Chinese property developer have now spilled over into a vital artery of the nation's industrial engine - the steel sector - and started to ripple through to other critical parts of the world's second-largest economy.

The spreading balance-sheet crisis at real estate firms is a warning for policymakers as a swing in the fortunes of the steel industry would have significant repercussions for China's economy, with cement, glass, and household appliances all vulnerable to demand drops.