Consolidation in China's Property Sector

In 2017, China's real estate market saw unprecedented growth, with major developers like Sunak acquiring assets at a record pace. The government's deleveraging campaign led to a consolidation in the market, affecting small and medium-sized developers. Sunak's aggressive expansion raised financial risks, as noted by rating agencies. Developers are shifting strategies to focus on asset-light models and redeveloping valuable land. The market remains competitive, with a few dominant players holding significant market share.

What was the total amount spent by China's developers in the second quarter of 2017?

• $10 billion

• $20 billion

• $14 billion

• $9.3 billion

What is a significant challenge faced by small and medium-sized developers in China?

• Lack of skilled labor

• Rising construction costs

• Government's deleveraging campaign

• High demand for luxury properties

What strategy are developers adopting to manage their financial risks?

• Focusing on luxury properties

• Investing in new technologies

• Expanding into international markets

• Adopting an asset-light strategy

What financial risk is associated with Sunak's acquisition of Wanda's assets?

• Decreased market share

• Rising financial risks

• Higher interest rates

• Increased competition

Why are developers like Sunak interested in acquiring existing properties?

• To avoid construction delays

• To benefit from lower taxes

• For redevelopment opportunities

• To increase rental income