China’s property crisis grinds on after Evergrande sentencing

China's property market continues to struggle six years after authorities cracked down on the heavily leveraged sector, with the fallout impacting millions of households and causing trade tensions. Evergrande founder Hui Ka Yan, once Asia's wealthiest person, was sentenced to life in prison for crimes including misuse of funds and bribery.

The collapse of the property industry, currently in its sixth year, has left millions of partially built properties abandoned, stalled home price recoveries in major cities, and plunged land sales. Smaller cities are experiencing a 24% drop in second-hand home prices from 2020 levels, slowing consumption. China's economy grew 4.3% in the three months to June, the weakest pace in over three years.

State-owned property developers now dominate the market, with banks largely refusing to lend to private developers. While some analysts believe the worst may be over, the property sector faces a lengthy, potentially decade-long correction in prices to clear the market and stimulate growth.