Fitch Ratings

Pandemic Progress Check: China Homebuilding

Contracted sales of Chinese property developers have largely recovered since the onset of the coronavirus pandemic. Nationwide monthly sales declined by up to 35% at the pandemic’s peak in February 2020 when the government ordered most sales offices to shut, but have since rebounded. Monthly sales growth turned positive in year-on-year terms since May 2020, and cumulative nationwide contracted sales up to September 2020 were 6% higher than in the same period in 2019.

China Market Reforms Lift Securities Growth Prospects

Capital markets in China remain underdeveloped when compared with global peers, despite rapid progress over the last decade. Heavy reliance on indirect finance, evolving regulatory and legal frameworks, and visible government interventions highlight capital markets' weakness in terms of depth and breadth. Fitch Ratings believes ongoing regulatory reforms could strengthen the capital markets framework and thus sustain further development, improving financial system stability and capital mobility.