Citibank Predicts The Collapse of The Real Estate Sector in China

Experts at Citibank said Friday that the Chinese real estate market is expected to witness a strong downturn, regardless of what happens in the crisis of Evergrande, one of the largest real estate developers in China.

Experts at Citibank added that the real estate sector will face downward pressure, despite the possibility of a restructuring of Evergrande.

The US bank pointed out that in light of the sharp decline of the real estate sector in China during 2014, the repercussions of the current crisis will be more visible in global markets, in addition to its strong impact on credit and currencies in emerging countries.

The Wall Street Journal had previously reported that Chinese authorities had asked local officials to prepare for the possible demise of debt-laden property developer Evergrande, and local officials described signs from Chinese authorities that they were preparing for a potential storm and said the government told them they should intervene only at the last minute to prevent the effects. Indirect from the demise of the Evergrande.