Bond issuances in both onshore and offshore markets by Chinese property developers will decline to less than US$18 billion next year, Moody’s Investor Services, Inc. said.
“Bonds to be raised in 2014 will be relatively less than this year’s, as this year is a special one in view of the low cost of lending amid the monetary easing in the United States,” Franco Leung, assistant vice president at Moody’s, told a press briefing on Monday.
Leung said bond issuances in 2014 will be less than US$18 billion, the amount of loans recorded for the first 10 months of this year, but more than the US$8 billion obtained in 2011 and 2012.
The credit rating agency said banks will continue to see robust growth in property loans in the absence of significant regulatory control measures, while refinancing risk will be low because maturing offshore bonds will be insignificant next year.
Moody’s also said growth in property sales will moderate to about 10 percent over the next 12 months from more than 30 percent as of August this year as economic growth slows further and in view of the high base this year. Property prices will also stabilize as the government pushes its affordable housing program, it said.
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