In fact, leading real estate developers fell wealth is only one aspect, some property developers because of the involvement of and investment banks on the bet, the loss is not small. In Country Garden, for example, the head of China’s richest man, who is due early developers and Merrill Lynch entered into a share swap agreement, so far caused losses to the company, in the first half of the loss of about 190 million yuan, and in accordance with the agreement, last year’s loss more.
Significant impact on property developers have high debt expansion. For example, a central corporate real estate real estate sales in 2008, the situation in poor condition, the company continues to expand by 12 new projects, added 5.94 million square meters of land reserves. This expansion of the momentum that the company’s stock soared from 28 billion yuan to 40.1 billion, an increase of more than 40%. Inventories rise, inevitably lead to increased, a case of extraordinary circumstances, capital chain rupture is very likely. Reporter observed signs of the current high debt expansion seems to repeat itself again, some medium-sized developers, but billions of cash on hand, large developers, the hands of hundreds of billion in cash only, and around to the king again reproduce, One can imagine the financial cracks.