Authorities in the southern Chinese city of Shenzhen have blocked the sale of around 2,900 units of state-owned developer China Overseas Land & Investment (COLI), an official website shows, piling further pressure on the troubled sector.
The blockage comes after a similar move against embattled property company Kaisa Group that has rattled investors and triggered big losses in real estate shares. As in the case of Kaisa, no reason was given for the COLI move.
Chinese property developers are struggling against a credit crunch and excess supply, which have tempered hopes that real estate could provide a boost to the economy. Late last year, the government put in place a series of stimulus measures to spur property buying but inventory remains high.