Property firms facing funding crunch
Chinese real estate enterprises' capital flow has been under great pressure this year, with mergers and equity transfers occurring frequently in the second half of this year, a trend which analysts expect to continue in 2019.
More than 30 small and medium-sized developers had transferred bonds and equities in the second half of the year, while among public companies, 46 property mergers and acquisitions were reported, with a total transaction value of 48.9 billion yuan ($7.07 billion), according to data released by Shanghai-based information provider Wind Info.
"Real estate companies have been under unprecedented great pressure in recent years, and there is no sign of relief as local governments' tightening policies are taking effect. Selling property assets could help alleviate the cash flow pressure of developers," said Zhang Dawei, chief analyst at Centaline Property Agency Ltd.
