The fragile state of China’s real estate sector continues to weigh heavily on dry bulk fortunes.

State-run developer China South City Holdings was ordered to liquidate by Hong Kong’s High Court yesterday, with debts nearing $8bn, making it the biggest Chinese builder by assets to be wound up since China Evergrande Group. 

Data for July shows that the 100 largest Chinese property companies saw new-home sales decline 24% year-on-year.

“New real estate starts in China have been decreasing for five consecutive years and have fallen 20.1% during the first half of 2025, reducing construction activity and affecting demand for dry bulk commodities,” stated a recent report from BIMCO.

Maritime analytics platform Signal noted China’s property sector is responsible for roughly 35–40% of domestic steel and iron ore demand. In Q1 2025, new residential construction starts fell 24% year-on-year, while property investment dropped by around 16.5%.

“Despite government stimulus efforts, including a ¥4trn ($27bn) loan facility and tax incentives, buyer interest remains subdued. A backlog of unsold homes and ongoing developer bankruptcies continue to drag on construction activity and raw material consumption,” Signal noted in a recent market update.