The COVID-19 outbreak has, no doubt, placed additional pressure on Chinese real estate developers' cash flows and their ability to finance their operations.
Whilst at time of writing, China is gradually getting back to work, in this publication we look at how:
- Chinese property owners and developers finance their operations by pre-sales and how they should position themselves to succeed given the heightened macroeconomic uncertainty and liquidity pressure;
- Existing lenders should monitor their credit portfolios and what actions they should be taking now, to minimise risks; and
- Credit and special situation investors, who have been investing in secured real estate debt or providing customised financing solutions to Chinese real estate businesses, should look to position themselves for additional deal flow.