China’s multi-year property crisis is set to drag on in 2026 and further weigh on banks’ asset quality, even after the government stepped up its stimulus push to boost demand, according to Fitch Ratings.
The country’s new home sales by area may decline 15%-20% from their current level before the sector stabilizes, Lulu Shi, a director at Fitch, said at a briefing in Shanghai on Wednesday. Transactions by value may drop another 7%-10% next year, she added.
