China developers stare at a $197-bn problem as debt and wages pile up

China’s property developers have mounting bills to pay in January and shrinking options to raise necessary funds.

The industry will need to find at least $197 billion to cover maturing bonds, coupons, trust products and deferred wages to millions of migrant workers, according to Bloomberg calculations and analyst estimates. Beijing has urged builders like China Evergrande Group to meet payrolls by month-end in order to avoid the risk of social unrest.

Policy for the property market remains tight even after China in December pivoted toward supporting economic growth. Future focus is likely to be on ensuring homes are delivered, and the country’s