Liquidity Issues Impact Chinese Property Market and Economy

The cash crunch of developers like Country Garden Holdings Co. is affecting China's economy. The upcoming earnings of Country Garden Holdings Co. and China Vanke Co. are anticipated to reveal the depth of this crisis. The situation worsened for Country Garden when a creditor's petition for liquidation was filed last month in a Hong Kong court. This crisis is not only a concern for the developers but also has implications for Chinese banks, such as ICBC and BOC, as they grapple with the burden of the property drag.