Real estate crisis in China can inflict bigger economic blow: Report

The real estate slump in China has sucked in both banks and provincial governments, threatening a bigger impact on the world's second-largest economy, according to media report.According to Nikkei Asia, defaults have soared over the past 12 months after property developers' debt-fueled growth model lurched into reverse. Around 99 defaults on domestic debt occurred in the year including delayed payments, according to Shanghai-based Wind Information.It is to be noted that China's factory-gate inflation in July reached the lowest since February last year, according to the National Bureau of Statistics. The country's producer price index, which gauges factory-gate prices, increased 4.2 per cent year-on-year in July, following a 6.1 per cent rise from the previous month, China Daily reported citing NBS.Earlier, S & P Global Ratings warned that around 20 per cent of Chinese developers it rates are at risk of insolvency. Chinese government triggered this reversal by imposing tougher ...

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