To understand why many of China’s small property developers are struggling, look no further than Zhejiang Xingrun Real Estate.
The once little-known regional developer is now on the brink of becoming one of China’s biggest real estate bankruptcies in recent memory.
As China’s property bubble shows signs of deflating in some areas – in peripheral neighborhoods in lower-tier cities – privately held developers like Zhejiang Xingrun are falling by the wayside, victims of a toxic combination of unjustified optimism about the property market and sky-high interest rates.
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