Monday, March 17, 2014

Chinese property developer near bankruptcy with debt exceeding US$500m: report

Chinese property developer near bankruptcy with debt exceeding US$500m: report: "he company illegally raised most of the remaining funds from 98 individual investors, according to the report on Monday. Private fundraising is common but illegal in China. "As far as we know, this is the largest property developer in recent years that is at risk of bankruptcy," wrote Zhang Zhiwei of Nomura Securities in a research note. "We believe more property developers will face similar pressures as transaction volumes slow and cash flow conditions tighten." Bankruptcies and bank loan defaults in China are common, but the size of Zhejiang Xingrun's outstanding loans, and the fact that the near-bankruptcy troubles follow shortly after China's first public bond default on March 7, is likely to rattle investors."



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