Agile Property has been granted temporary relief from lenders but its woes bring into stark relief the funding challenges facing China's cash-strapped developers amid a slowdown in the sector.
“For the Chinese property sector as a whole we think the financing condition has tightened and is going remain tight over the next 12 months, both onshore and offshore,” Vincent Lam, an analyst at SP, told FinanceAsia.
“We think refinancing risk is rising, particularly for developers that have high leverage and short-term maturities,” he said.
China’s property market has cooled sharply since the start of the year. New home sales volumes were...