Chinesepropertydevelopers have reduced their appetite for land purchases amid the tightened credit environment and weaker sales, resulting in some failed land auctions in certain cities.
Chinesepropertydevelopers (and speculators) were among the biggest beneficiaries, as real-estate prices revived strongly in the fourth quarter, to the point where Jing sees danger signs ahead.
Lending support to the markets, shares of many Chinesepropertydevelopers continued to rise two days after the People's Bank of China pledged more support to first-time home buyers.
Of the 90 publicly listed Chinesepropertydevelopers listed on the Shanghai and Shenzhen stock exchanges, almost two-thirds of them reported negative operating cash flows for the first half of 2010.
Beijing-based Bank of China has become increasingly active as a lender to U.S. propertydevelopers since late 2009, joining scores of well-capitalized Chinese investors who have helped fuel a commercial real-estate recovery in U.S. cities.