Central China City Calls Out Developers for Breaking ‘Presale Fund’ Rules

More than a dozen subsidiaries of Chinese real estate developers have been called out in the central city of Wuhan for violating rules designed to prevent them from misspending the money that customers paid in advance for their properties.

The Wuhan Municipal Bureau of Housing named 16 companies in charge of real estate developments in the city, according to a notice published Tuesday. They include the units of several major distressed property developers, including Country Garden Holdings Co. Ltd., Shimao Group Holdings Ltd. and Sino-Ocean Group Holding Ltd.