Default 'sign of stress' in property sector
By Hu Yuanyuan | China Daily | Updated: 2014-03-20 07:28
The default of Zhejiang Xingrun Real Estate Co may portend difficult times ahead for small developers amid emerging risks in third- and fourth-tier cities, analysts said.
On Tuesday, several media reports said that Zhejiang Xingrun, a private property developer in Fenghua, Zhejiang province, is likely to default on 3.5 billion yuan ($573 million) in debt owed to several banks, as well as other obligations.
The Financial Times also reported that the People's Bank of China had held a meeting with the local government and other banks to discuss the case.
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