Rising refinancing risks pose danger for Chinese developers: S&P

12 Mar 2012

Cash-strapped property companies will continue to struggle due to weak sales amid stiff competition and strained liquidity on tighter regulations. This has led to rising refinancing risks, says the rating agency.

Among Asia’s real estate companies, Chinese developers appear to be the closest to their pain thresholds. Mounting competition and tight regulations – which has led to unsold inventory, stifled profits and strained liquidity – has caused one issue: rising refinancing risks.

“Rising obligations due this year and the weak ...

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