Advertisement
SKIP ADVERTISEMENT
Supported by
SKIP ADVERTISEMENT
How China’s Property Crisis Blew Up Bets That Couldn’t Lose
Citic said its new fund was as safe as they come because it would invest in real estate. Then the developer defaulted and the projects stalled.
Share full article
35
Read in app
The Sunac One Central residential compound, in Beijing, in 2021. Credit...Roman Pilipey/EPA, via Shutterstock
By Claire Fu and Daisuke Wakabayashi
Reporting from Seoul
Dec. 28, 2023Updated 2:04 p.m. ET
Get it sent to your inbox.
One of China’s largest investment firms, Citic Trust, had a clear pitch to investors when it was aiming to raise $1.7 billion to fund property development in 2020: There is no safer Chinese investment than real estate.
The trust, the investment arm of the state-owned financial conglomerate Citic, called housing “China’s economic ballast” and “an indispensable value investment.” The money it raised would be put toward four projects from Sunac China Holdings, a major developer.
Three years later, investors who put their money in the Citic fund have recouped only a small fraction of their investment. Three of the fund’s construction projects are on hold or significantly delayed because of financing problems or poor sales. Sunac has defaulted and is trying to restructure its debt.
Subscribe to The Times to read as many articles as you like.
Claire Fu covers news in mainland China for The New York Times in Seoul. More about Claire Fu
Daisuke Wakabayashi is an Asia business correspondent for The Times based in Seoul, covering economic, corporate and geopolitical stories from the region. More about Daisuke Wakabayashi
Read 35 Comments
Share full article
35
Read in app
Advertisement
SKIP ADVERTISEMENT
Comments 35 How China’s Property Crisis Blew Up Bets That Couldn’t Lose Skip to Comments Share your thoughts. The Times needs your voice. We welcome your on-topic commentary, criticism and expertise. Comments are moderated for civility.