In fact, the major real estate development companies fell call a side bet, and because of the involvement of some real estate development and investment banks are losing a little. Country In The Garden, for example, the initial developer and Merrill Lynch will head the Chinese share of the rich and swap contracts, the company now for the loss of 190 million yuan in the first half, along with the contract caused the loss of last year losses are more.
Significant impact on property developers can expand their high debt. For example, the central corporate real estate real estate sales in 2008, the situation is in poor condition, the company expanded into 12 new projects and continue to 5,940,000 m2 of land holdings added. This extension of the instruments of the company’s stock soared 40.1 billion from 28 billion yuan, increased by more than 40%. Inventory Consequently, special situations, capital chain rupture is likely to lead significantly increased the rise. Expand the current high debt reporters observing the symptoms of being repeated, some medium-sized developers, but billions of cash in hand, the king of big developers only, and around 1 billion in cash on hand, again, one of hundreds of financial reproduce You can imagine the cracks.