全美地产经纪商协会（National Association of Realtors）的一项调查显示，2012年，中国人已成为美国住宅市场第二大海外购买群体，占美国住宅对外销量的11%，大大高于2007年的5%。
Tycoon Realtor Bankrupt with 3.5 Billion Yuan Debt
Is it a sign?
While many Chinese real estate tycoons fled abroad,
a prominent Zhejiang real estate developer collapsed.
With an official debt of $ 3.5 billion yuan ($625 million),
its largest shareholder was detained on charges of
‘Illegally absorbing public deposits’.
What happened to the real estate developers in China?
Let’s hear what the experts have to say.
Zhejiang Xingyun Real Estate Company is a local leading
It was certified as the state level real estate developer, and named
the 33rd among the top 100 businesses in Ningbo and the 5th in
real estate companies.
Accordingly, Zhejiang Xingrun Realty, in debt of 3.5 billion yuan,
with a corporate asset between 2.7 to 3.0 billion yuan, had a
deficit of 0.5 to 0.8 billion yuan.
The corporate owners Shen Mingchong and Shen’s father
Shen Caixing were transferred to Fenghua City Procuratorate
on charges of ‘Illegally absorbing public deposits’ on the 11th.
It was reported that the company had illegally absorbed more
than 700 million yuan of public deposits with loan interests of
18% to 36 % per annum.
Mao Yushi, economist and Director of Unirule Institute of
Economics: “I don’t think the crime of illegally absorbing public
deposits can be established.
This ‘illegally absorbing public deposits criminal law’ is in fact a
So, it is legal for the state banks to absorb public deposits, but
illegal for others?
Collecting funds could be for the good.
It is totally wrong to consider fund-collecting as a crime."
In recent years, many Chinese real estate tycoons have invested
China’s largest residential real estate company, Vanke Group,
started to invest in Singapore and the United States after decades
of development inside China.
The Chairman Wang Shi said the next target will be the United
Another real estate giant, Dalian Wanda Group, is building a
comprehensive hotel project on the south bank of the River
Thames in London.
Chris Wu, China affairs magazine editor-in-chief: “Their business
can be this large because of the connections and collusion with
They can’t afford it if they have a poor relationship with the
Under a crisis, they will either need political protection or
escape as soon as possible. Otherwise, they’ll be classified a swindler.
That’s the fate of these businessmen under the Communist regime."
A survey of the National Association of Realtors showed that in
the Chinese have become the second-largest purchasing group in
the U.S. residential market, accounting for 11 % of overseas sales
of the U.S. residential market,
much higher than the 5% in 2007.
China affairs magazine editor-in-chief Chris Wu analyzes that
these Chinese real estate tycoons have escaped because they
stayed clear of the manipulation of the Beijing government.
Chris Wu: “It is using these private capitalists to make money.
The profits from the real estate, including the taxes, are absorbed
by the government at 70 %.
The realtors should feel lucky if they can get 15% to 20% of the
When you can’t make that much, it will turn around and bite you."
Local authorities claimed that Xingyun Realty can not repay its
debt because of poor management.
However, company staff complained to the media:
“The Government also has the responsibility."
Years ago when the market was good, the government set a very
high premium for the land, the companies had to pay high to
develop the land.
Now, the government sells nearby land at low prices due to the
which has thus caused the formerly high-priced real estates tumble
in value, and finally break the financial chain.
Chris Wu: “There is no selling, the investment returns are zero,
but there’s still interest on loans that needs to be paid.
The lack of cash-flow will surely result in the 3.5 billion capital
fracture and debt.
Not being able to pay the loan, the government will raid your
home and arrest you on the charge of being a swindler.
That is how the regime maintains its ruling."
Chris Wu believes that Xingyun Realty is by no means an
isolated case, but rather the tip of the iceberg in the Chinese
real estate bubble burst.
Mao Yushi: “The real estate bubble burst is inevitable.
The question is when.
There are so many vacant buildings in China.
If they are all occupied, then it won’t go burst."
Currently, the Ningbo local government is hoping for some
enterprise to take over the construction
of the Xingyun real estate,
otherwise, its many buildings will not be unfinished.
The biggest victims will be the people who paid the premium
to purchased the buildings if they become unfinished projects.
Interview & Edit/Tang Yin Post-Production/Chen Jianming