"For real estate companies that are seriously insolvent and have lost the ability to operate, those that must go bankrupt should go bankrupt, or be restructured, in accordance with the law and market principles," Ni Hong, Minister of Housing and Urban-Rural Development, said at a press conference Saturday.
Ni's comments come as major real estate developer from Evergrande to Country Garden have defaulted on their debt, while plunging new home sales have put future business into question.
Authorities have since announced measures to provide some developers with financing. But the national stance on reducing the role of real estate in the economy hasn't changed.Real estate barely came up during a press conference focused on the economy last week, while Ni was speaking during a meeting that focused on"people's livelihoods."