Real estate sector crosses red lines

Since 2020, the Chinese government has strengthened its regulation of the real estate sector and issued “three red lines”, aiming to lower the high debt ratio of real estate companies and reduce the economic reliance on the real estate sector. However, the largest companies failed to reach this target. Reasons include weakening purchasing demand and operational difficulties primarily caused by strongly restrictive policies during the economic downturn.​

Last updated: 24. July 2025