Chinese officials have begun privately applauding the financing problems being experienced by the country’s bloated property sector. They hope this will let off steam and help prevent a dramatic bursting of a property bubble.
Investors have reacted with alarm to signs that Chinese developers are struggling to fund their operations – fearing it could presage a collapse of the sector.
This would have repercussions for the whole Chinese economy and hit one of the last remaining sources of growth for the stuttering global market.
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