From the chinese press

SOEs land in trouble

State-owned enterprises (SOEs) are obsessed with real estate because they earn huge profits from the sector. But if the real estate balloon bursts it will cause irreparable damage to the national economy, says an article in the Economic Observer. Excerpts:

More than 70 percent of 134 SOEs earn nearly a third of their revenue from the real estate market. This, combined with their poor adjustments to changing market situations, would land them in big trouble if the property market balloon bursts. An example of the SOEs' adjustments is their floating loss of 11.4 billion yuan on an investment of 125 billion yuan in financial derivatives.