China’s Skyscraper Boom Comes Down to Earth

A subsidiary of China’s largest construction group has suspended work on one of the nation’s tallest skyscrapers after the developer became the latest in a string of companies to default on a payment, the Financial Times reported. The default highlights the growing challenges faced by China’s construction groups as the slowing economy trims credit supply, putting the once runaway mega-tower building boom under stress. In an October 30 letter seen by the Financial Times, China Construction Third Engineering Bureau Co said it would halt construction on a 475m-high skyscraper in the central city of Wuhan. It said Greenland Group, one of the nation’s largest property companies, had failed to make “a significant” project payment. “Unfinished super tall skyscrapers, which cost a huge amount of funds to build, are a typical sign of economic recession,” said Yan Yuejin, an analyst at Shanghai-based E-house China Research and Development Institution. Read more