China Property Sector Left in Limbo by Stalled Debt-Restructuring Talks

Many debt negotiations are moving slowly, creating an overhang for a housing sector that is trying to recover

China Evergrande has twice missed deadlines to come up with a restructuring plan for its foreign debt. Photo: /Bloomberg News

Chinese property developers are making little progress in negotiations with foreign bond investors, creating a $30 billion headache for an industry that is trying to return to health.

Dozens of the country’s developers defaulted on their dollar bonds last year, amid a sharp slowdown in China’s property sector. That has led to a series of difficult—and protracted—negotiations with overseas fund managers. 

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