Foreign investors are fleeing China

Jing’an century, a housing development with ponds and lush greenery in north Shanghai, should have been bustling as workers put the finishing touches on flats. Instead the area is silent. A two-month lockdown of the city of 25m people has forced Yanlord, the developer, to halt construction on the site. Homebuyers have been on edge for months as some of the country’s largest developers default on bonds and struggle to deliver homes.

Now Yanlord, until recently deemed in decent shape, is telling customers they will not receive their properties on time. At least 20 housing developments across the city have announced similar delays. Many other projects have been forced to stop selling units. The lockdown has been so severe that roadblocks and police checkpoints have mushroomed. Workers, materials and sales agents have been unable to reach construction sites. Meanwhile, Yanlord’s pre-sales of homes have slumped to less than 20% of the level a year ago.