"Chinese developers will likely face a 'much higher pressure' on their foreign investments as the country’s currency, the renminbi, depreciates and the Chinese government continues to increase capital controls, said economist William Yu. 'I don’t think it’s possible to find a way to move the money out of China right now,' said Yu, who focuses on the L.A. economy and forecasting at UCLA’s Anderson School of Management. That could require Chinese companies like Oceanwide to find alternate sources of financing.
"Adding to the uncertain economic environment is that lenders are more cautious about underwriting major projects, said Eric Sussman, a UCLA Ziman Center for Real Estate professor and real estate investor.
“Any amount of uncertainty in markets is going to have an economic impact, but we’re talking about [seven-month] delay now,” he said. “It sounds like there may be broader issues.
Recent Comments