A rash of real estate companies in China have gone bust in the first half of 2020, although levels have not diverged significantly compared to 2018 and 2019.
Data from China’s court system indicates that as of 30 June a total of 228 real estate companies had gone bust in 2020.
This compares to 177 companies in the first half of 2018, and 235 in the first half of 2019.
Wang Xiaoqiang (王小嫱), analyst with the Zhuge Zhaofang Data Research centre (诸葛找房数据研究中心), said that most of the bankruptcies were of small and medium-sized real estate enterprises in China’s third and fourth-tier cities.
According to Wang these companies had less ability to withstand the economic impacts of the COVID-19 pandemic.