KKR says China's real estate correction may only be halfway done
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China's real estate troubles are likely far from over, according to a report by KKR. The report suggests that China's housing market correction may only be halfway complete in terms of its depth, based on comparisons to housing corrections in the U.S., Japan, and Spain. KKR emphasizes the need to address the overbuilt real estate industry quickly for overall GDP growth to pick up significantly. The report also highlights the importance of restoring confidence to drive savings down and spur consumer and business spending. KKR expects a modest slowdown in China's GDP growth to 4.7% this year, with real estate and Covid-related factors halving their drag on the economy. The report suggests that more action by Beijing to improve China's real estate sector could shift investor perception. However, geopolitical tensions and the property market slump have given many foreign institutional investors pause about investing in China. KKR's report also mentions the importance of repairing soft spots in the economy, particularly in the housing sector, to improve the cost of capital and allow new consumer companies to access capital markets. The report concludes that if China adjusts its domestic policies to be more investor-friendly, the market could rebound significantly from current levels.

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https://www.cnbc.com/2024/04/03/kkr-says-chinas-real-estate-correction-may-only-be-halfway-done.html