Could China's real estate suspension lead to further decline in HKEX?

02 Apr 22 news reported that "At least 33 Hong Kong-listed companies faced suspension from trading after failing to report yearly financials. Over 138 companies had announced that they would not meet the deadline to release their audited 2021 results."

Will this slip lead to a bigger fall in the market?  Real estate easily affects about one-third of the China economy.

Extract from CNBC news dated 9th Nov 2021:

A research paper by renowned Harvard Professor of Public Policy and Economics Kenneth Rogoff and IMF Economist Yuanchen Yang estimated that the real estate sector accounts for around 29% of China’s GDP. “If 29% of GDP just marks time, let alone declines, for the next 10 years ... you will know all about it,” George Magnus, economist and research associate at the China Centre at Oxford University, said.

This includes housing investment, services such as managing, renting and buying, along with other inputs such as commodities and consumer durables.  "If 29% of GDP just marks time, let alone declines, for the next 10 years ... you will know all about it, and people that sell into that market, whether internally or from outside, will also feel that,” Magnus said. 

Texas A&M Economics Professor Li Gan, who said last week that the Chinese real estate sector has to become “substantially smaller” in order to keep the wider economy stable and healthy. Gan estimated that 20% of China’s housing stock is vacant as buyers rack up second and third properties as investments, while developers continue to build millions of new units each year on the back of years of excessive borrowing.

This real estate concern can be contained before it slips further.  I am sure that the Chinese government has put together measures to address the concerns.  While we do not expect the financial reports of the various real estates to bring much comfort, hopefully, it is sufficient to address some concerns.