//
you're reading...
Real Estate

Bankruptcies ripple through Chinese developers


More Chinese property developers have filed for bankruptcy, the South China Morning Post reported on Friday, as failures ripple through small real-estate companies after more than two years of measures aimed at curbing home prices in China.

Guangdeye Property Development, based in Shunde in the southern province of Guangdong, has declared bankruptcy, unable to pay back debt, the newspaper stated, citing the Shunde People’s Court.

That follows the reported failure of two developers in Hangzhou, the capital of Zhejiang province further north on China’s coast, where local media said both Hangzhou Jinxiu Real Estate and Hangzhou Glory Real Estate have filed for bankruptcy.

With around 60,000 developers in China, analysts expect more failures among unlisted companies, which would benefit big, geographically-diverse listed developers such as China Vanke and Evergrande Real Estate.

Jinsong Du, China property analyst at Credit Suisse, told Reuters that bankruptcies are likely to spread to other cities. The court filings show that the companies are trying to stay in business instead of simply exiting the industry.

“Historically, most small developers just took whatever they had and disappeared, rather than filing for bankruptcies,” Du said.

Other developers have been selling off assets to pay down debt. CCB International this week upgraded its rating on the stock of Greentown China Holdings, which has raised 4.8 billion yuan ($761.43 million) in cash by selling out of developments in 2011 and 2012 in a bid to deleverage.

Alex Frew McMillan
Reuters

About Craig Hill

General Manager at Craig Hill Training Services * Get an Australian diploma by studying in your own country * Get an Australian diploma using your overseas study and work experience * Diplomas can be used for work or study in Australia and other countries. * For more information go to www.craighill.net

Discussion

5 thoughts on “Bankruptcies ripple through Chinese developers

  1. Reblogged this on Craig Hill.

    Like

    Posted by Craig Hill | April 20, 2012, 11:48 pm

Trackbacks/Pingbacks

  1. Pingback: Greentown China facing bankruptcy in property slump « China Daily Mail - June 4, 2012

  2. Pingback: Citron accuses Chinese developer Evergrande of “fraudulent information” « China Daily Mail - June 21, 2012

  3. Pingback: China’s Newest Investment Looks Like A Scam « China Daily Mail - August 6, 2012

  4. Pingback: In wealthy Chinese city, debt guarantees spark default contagion | China Daily Mail - April 29, 2014

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

China News

China News is not affiliated in any way with any publication in China or anywhere else.

Enter your email address to receive an email each time an article is published, or join our RSS feed. 100% FREE.

Join 3,690 other followers

Want to write for China News?

Read “Contributor Guidelines” above to join our team of 76 contributors. Write news or opinion about issues in China, or post photos and video. Promote your own site.

Recent Posts

China News Articles Have Been Featured In:

%d bloggers like this: