Chinese Checkers

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China's real estate sector is facing a bit of a which-fire-to-put-out-first dilemma. 

It all started one September morning with Evergrande rattling global markets by warning it could default on its huge debts. 

Since that ill fated day, more Chinese builders have made similar public confessions, shaking up investors and fanning fears of contagion across the entire sector.

Any Checks In Place Yet?

Per Chinese state media, an internal meeting will be held by the China Real Estate Association on Friday, October 15, in the capital city of Beijing to evaluate challenges faced by real estate companies. 

This emergency huddle will bring together high-level executives from housing companies to probe the problems in China's housing market and address the turbulence.

Can They Fix It?

To be honest, it's too early to say how the crisis will be resolved but there are a few lines of thought worth paying attention to. 

📌 The stressed companies could try to restructure their debts and work things out with their lenders. 

📌 They could also plead with the Chinese government for a bailout, but so far Beijing is mum on the issue besides promising to protect homebuyers. 

📌 The last and probably the worst option would be to let the truth have its day and witness a disorderly series of defaults, which would send tsunamis across China's economy, and perhaps beyond. 

As top executives finalise their wardrobes for the oncoming meeting this week, China's property crisis has ensnared three more large developers. 

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