China's Developers See Cracks in Foundation with Financing Problems

(Beijing) – It is a bad time to be a developer in China because financing is drying up, making even the big companies struggle with debt.

Of the 110 domestically listed real estate companies, only 28 percent reported a net inflow of cash from operations in the first quarter of this year, says a recent report by Goldman Sachs Gao Hua, a securities firm. The ratio in the first quarter of 2008 amid the global financial crisis was 27 percent, a record low for the country.