China’s private builders face US$553bil shortfall

As China’s real estate crisis continues, the impact of property easing measures from last year are fading in the new homes market.Photographer: Qilai Shen/Bloomberg

SHANGHAI: Chinese private developers face a four trillion yuan (US$553bil) funding gap to complete pre-sold homes, adding to the woes of an industry that has yet to bottom out, according to a research report by Goldman Sachs Group Inc.

Credit support from banks, which totalled 469 billion yuan as of the end of March, “appears well below the amount needed for securing home completions”, analysts led by Lisheng Wang wrote in a report.