China's property market is rebounding from the coronavirus crisis, but some warn it may overheat

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Housing sales in the country plummeted at the outset of the pandemic as China's economy shut down. But official data pointed to a recovery in transactions as the country reopened.

On Thursday, Blackrock's Head of Asian Credit Neeraj Seth also said he was "positive" on high-yield bonds in Chinese real estate.

High-yield bonds, or what are commonly known as junk bonds, are non-investment grade debt securities that carry a high default risk, and therefore, usually come with higher interest rates to compensate for that risk. Such instruments carry a credit rating of BB+ or lower by Fitch and Standard and Poor's, or Ba1 or below by Moody's.

But last year China experienced a slew of corporate bond defaults, raising concerns about the risks in its high-yield bond market.Analysts also warn that there could be a property bubble as the market continues to recover. Japanese bank Nomura, too, warned of a "potential property bubble" in a Thursday note. It cited rising property price inflation across 70 Chinese cities, inching up 0.6% month-on-month in June, up from 0.5% in May. The number of cities experiencing "sequentially higher" prices also rose from 57 to 61, it said.

 

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Artificial insemination by CCP.

It may overheat as there are more restrictions from the CCP regarding the movement of money. Stashing money into properties is popular when banks won't do. Wear a mask. Vote. Care for all. =

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