Moody’s downgrades Chinese property sector’s outlook to Negative from Stable despite government support

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Moody’s downgraded the outlook of China’s property sector to negative from stable, citing economic growth challenges that would dampen sales despite government support.

Moody’s expected the sector’s contracted sales to decline by about 5% over the next six to 12 months in China, and the impact of government measures to boost property purchases was likely to be short-lived and uneven.

Credit stress at Country Garden, which Moody’s rates as Ca with a negative outlook, has amplified investors’ risk aversion, it said.