Chinese real estate developers are looking at huge amounts of debt maturing this year, at a time when traditional borrowing markets are closed off due to Beijing's campaign to rein in borrowing in the sector.
Chinese real estate developers have US $117 billion worth of debt maturing in 2022, with US $36 billion of that in dollars, according to Refinitiv data.
There are a number of offshore debt defaults and credit rating downgrades that are facing an unprecedented squeeze on developers in the country because of the regulatory curbs on borrowing.
The slowdown in the sector pressured developers, with property investments falling at the fastest pace since early 2020, affecting the country's outlook despite a robust headline economic growth figure.
China Evergrande Group has been struggling to repay more than US $300 billion in liabilities, including nearly US $20 billion of offshore bonds that were deemed to be in cross-default by ratings agencies last month after it missed payments.
In recent months, the equity and bond prices of even the largest developers have been hit by worsening credit conditions.
A 3.125 per cent October 2025 bond issued by China's biggest developer by sales, Country Garden, has fallen 17 per cent this year to 73 cents as of Tuesday.
According to Refinitiv data, debts worth US $27 billion are due in the first quarter of this year and US $31 billion in the second quarter.
Kaisa Group Holdings, Guangzhou R&F Properties Co Ltd and Yunnan Health Cultural Tourism Holding Group Co Ltd were among the developers with at least 2 billion debt maturing this year, topping the list.
Evergrande avoided a technical default on an onshore yuan bond earlier this month after bondholders agreed to extend a payment date. China is expected to soften its attempts to purge the property sector as top leaders prioritize stability and shoring up growth in 2022.