Macro-financial risk
2026-04-26
9 minute read
5 sources
China property unwind in 2026: developer balance sheets, LGFV stress, and the household wealth drag
Two and a half years into the property correction, stabilization measures have arrested the worst tail risks but left China facing a multi-year deleveraging that is reshaping household consumption, local government finances, and the PBOC's structural toolkit.
China's property unwind entered a different phase in 2026. Evergrande's offshore liquidation has been working through Hong Kong courts since early 2024, Country Garden completed its dollar bond restructuring in late 2025, and Vanke, the surviving benchmark, is being kept current through a state shareholder lifeline rather than market acce...