Significant decline in China home prices.

According to a report by a foreign news agency, new construction from January to October also decreased by 7.7% compared to last year.

Evergrand, a major Chinese real estate company, has struggled to pay interest on its heavy debts, which has had a significant impact on the property market in recent months.
New home prices fell 0.2 percent in October, the biggest drop in China since February 2015.

China property market accounts for about a quarter of the country’s economic activity, and large property developers are currently mired in heavy debt repayments.

EverGrand, China’s largest real estate company, has a debt of about ً 300 billion. The company recently went into default and sold its 5.7% stake in media firm Hang Ten Networks for 14 145 million. Interest is paid on.

The company sold its car business in the UK last week, but the amount is unknown.

Other real estate companies in China are also trying to repay the debt. Developer Fantasia is due to pay 20 205.7 million in October, and the company’s share price fell 50 percent last week.

China introduced measures last year to ban developers from borrowing due to fluctuations in its property market but state media reports from last week hinted at a possible softening in the sector.