No property bailouts in China

CHINA ADVISORY - Report 05 Dec 2025 by Andrew Collier

Ever since property prices began to collapse in 2021 following Beijing’s draconian Three Red Lines policy limiting bank loans in 2020, the markets have been expecting a central government bailout of the property market. Instead, we have seen drips and drabs of help, mostly for individual projects or to assist debt-strapped local governments. Now, for the first time, domestic investors are becoming convinced that the central government will not rush in to provide a large-scale stimulus to prop up the ailing property market, China’s growth engine for more than two decades.

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