Fundraising by China Property Trust products decreased in Evergrande misery

© Reuters File Photo: A crane stands at a construction site near the headquarters of China Evergrand Group in Shenzhen, Guangdong Province, China on September 2, 2021. Reuters / Ally Gunn / File photo

SHANGHAI (Reuters) – Funding for China’s property trust products fell more than 40% in September from a month earlier, the official Shanghai Securities News reported Monday, adding that China Evergrand Group’s problems had further reduced investor appetite for the struggling sector.

Newly-launched real estate trust products collected 16.2 billion yuan from investors in September, down 44.8% from the previous month, the newspaper reported, citing data from investment adviser Usetrast. This is followed by a 24% decline in August and a 25% decline in July.

Evergrand’s financial crisis deepened in September, as developers struggled with more than ০০ 100,000 billion in misses to pay off asset management products, commercial bills and dollar bonds.

Chinese developers are already battling government spending and increasing costs on bond issues. The rapidly shrinking market for property trust products could further shrink the funding channels of a sector that is suffering from slow home sales.

In contrast, trust products that send money to the capital market have increased in popularity and fundraising, Shanghai Securities News reported.

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