China’s real estate crisis continues to escalate with suppliers to property developers reportedly joining the boycott to refuse loan payments.
Hundreds of contractors – including landscapers, construction firms and sculpture makers – complained that they can no longer afford to pay their bills because developers such as China Evergrande still owe them money, according to a «Caixin» report citing a statement from a supplier.
«Evergrande should be held responsible for any consequence that follows because of the chain reaction of the supply-chain crisis,» the statement said.
This marks the latest development in China’s escalating real estate crisis which saw homebuyers refuse to make mortgage payments for unfinished housing projects. This led to an emergency meeting between major banks, financial regulators and the housing authority. The China Banking and Insurance Regulatory Commission subsequently published an article calling on banks to provide liquidity to complete and hand over unfinished homes.
