Oaktree Capital Management controls two largely vacant residential land plots in a development in Qidong, China.

Photographer: Qilai Shen/BloombergMarketsThe Big Take

A Troubled $140 Billion Bet on China Property Gets Even Worse

Many foreign investors are stuck with real estate assets that are increasingly difficult to sell.

FacebookXLinkedInEmailLinkGiftFacebookXLinkedInEmailLinkGiftBy Bloomberg NewsOctober 20, 2025 at 9:00 PM UTCBookmarkSave

International investors who poured billions of dollars into China real estate are increasingly looking to sell their properties at steep losses, threatening more pain for a sector that has weighed heavily on Asia’s largest economy.

Since late 2024, investment managers including BlackRock Inc. and Carlyle Group have offloaded commercial buildings in the country that sold for far less than what they originally paid, causing banks that financed the assets to lose money as well. More global institutions are looking to divest their Chinese properties, said dealmakers and bankers who asked not to be identified discussing private information. HSBC Holdings Plc, Standard Chartered Plc and other lenders have also warned of higher defaults on their China real estate loans.

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