In less than a week, China’s real estate sector witnessed many builders’ ratings pulled by two of the world’s leading credit rating agencies.

According to Bloomberg, Fitch Ratings and Moody’s Investors Service have already withdrawn ratings on at least seven developers since October 10, citing insufficient information from the developers as the industry’s debt crisis deepens.

Fitch pulled its grades on CIFI Holdings Group, Seazen Group, and China SCE Group Holdings as the builders refused to participate in the rating process.

Meanwhile, Moody’s withdrawals involved debt-laden real estate giant China Evergrande Group, its peers Kaisa Group, and Sunac China Holdings, and Jingrui Holdings.

The U.S. rating firm said that in each case “it believes it has insufficient or otherwise inadequate information” to keep its previous ratings on the Chinese developers.

Bloomberg noted that both CIFI and Seazen are among the groups of Chinese builders that have recently sold their state-backed debts.

The rating withdrawals come as CIFI default this week. This raised concerns about whether the Chinese regime has the ability to control the liquidity crisis among developers and protect them from defaults. 

Regarding China’s property crisis, recent research data shows that the sector continues its slump, with home prices dropping for a third consecutive month in September.

Chinese media outlet Kanzhongguo, citing survey data from China Index Academy, reported that September home prices in 100 cities cut 0.02% month-on-month. This compared with a 0.01% drop in July and August.

In addition, the average sales of the top 100 Chinese housing firms from January to September plummeted 45.1% from a year ago.

The sales volume of the companies last month reached $79.56 billion (570.96 billion yuan), an increase of 10% from August and a decline of 25.4% over the same period last year. 

As reported by The Associated Press, analysts think the month-on-month growth was due to the Chinese property market’s low results in both July and August. In September, the 100 firms saw weak growth from a year earlier.

Over the last three quarters, 15 real estate firms had sales exceeding $14 billion (100 billion yuan), a decrease of 12 firms results from a year ago. 

Meanwhile, 100 housing companies earned over $1.4 billion (10 billion yuan). This compared with 148 companies from the year before.

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