Few outside China might know that e-commerce giants Alibaba and JD.com host the country’s largest online platforms for distressed property sales. On any given day, their auction websites offer a front-row view of China’s housing downturn where properties are foreclosed and liquidated under court orders, often at market-shaking discounts.
A month ago, 66 flat units in a Shanghai project owned by indebted developer Sunac were put up for auction after being seized by courts. Buyers were found but…