According to Shenzhen Real Estate Association’s latest research report, to the end of 2010,911 real estate companies were no longer engaged in real estate development, which means nearly 60% of Shenzhen real estate companies were close down or turning to other business areas.
Back in October last year, Tsinghua University predicted that if the property market regulation last for a year, 10 percent of the funds will face the threat of fund chain break. If the regulation last for more than two years, 30% of the real estate company will face financial difficulties or even bankruptcy.
According to sources close to the inspection department, from the first half of this year, a large number of real estate companies are breaking the bottom line of financial security, “the proportion is not less than 45 percent,” the source said.
Capital Weekly
Translated and edited by Peng Bo. He is now an editor of m4.cn. Write to him at pb.bloomberg@gmail.com.