Li Gan, economics professor at Texas A&M University, said China's real estate sector has to be 'substantially smaller' to stabilize as housing demand falls.
China's real estate sector has to be "substantially smaller" to keep the overall economy healthy and stable, said a top expert on the Chinese housing market.
"We have too big of a risk in the sector. We built too much housing, so the stabilization first has to come [from] trimming the sector," Li Gan, an economics professor at Texas A&M University, told CNBC's "Gan estimated that about 20% of China's housing stock is vacant as buyers rack up second and third properties as investments. Even then, developers continue to build millions of new units each year, he said.
Chinese property developers have grown rapidly following years of excessive borrowing. Troubles in the sector came to the forefront in the last few months as
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
China Evergrande says $2.6 bln stake sale of property services unit falls throughChina Evergrande Group said on Wednesday a deal to sell a 50.1% stake in its property services unit has fallen through, delivering a blow to embattled developer's hopes of avoiding a potentially disruptive default.
Read more »
China Evergrande Calls Off Plans to Sell Key Unit for $2.6 BillionChina Evergrande Group called off plans to sell a majority stake in its property-management unit for the equivalent of $2.6 billion, a major setback in the real-estate giant’s attempts to ease its liquidity crunch
Read more »
New 620-mile railway connects China and LaosChina's intense railway expansion has marked a new milestone with the official opening of a new track that pushes beyond its own frontiers into its southern neighbor Laos.
Read more »
Jack Ma Leaves China for the First Time Since Regulatory Woes BeganAlibaba co-founder Jack Ma is traveling outside of China for the first time since his business empire came under regulatory scrutiny about a year ago, according to people familiar with the matter.
Read more »
China tells mines to produce 'as much coal as possible'The Chinese government has ordered the country's coal mines to 'produce as much coal as possible' as it tries to increase production as winter approaches, and ease an ongoing energy crunch.
Read more »
How Turkey's approach to Africa differs from the West and ChinaAnkara offers a new opportunity to diversify and establish more humane, balanced, reasonable, and far from risky engagements to African countries
Read more »