Chinese property developer near bankruptcy with debt exceeding $500 million: report
Published on Mar 18, 2014 12:30 PM
SHANGHAI (REUTERS) - A Chinese property developer owing billions of yuan to banks and individuals is on the verge of insolvency, and its owner has been detained for illegal fund-raising, government sources in the city where the company is headquartered said on Tuesday, confirming domestic media reports.
The state-owned China News Services, quoting anonymous sources, said on Monday that Zhejiang Xingrun Real Estate Co, based in Fenghua city in eastern Zhejiang province, is on the brink of bankruptcy, owing 15 domestic banks 2.4 billion yuan (S$491.3 million) and individual investors another US$1.1 billion (S$1.39 billion).
The news pushed down Chinese property bond and stock prices.
An employee in the Fenghua city government's financial office, who spoke on condition of anonymity, broadly confirmed the reports about the company's troubles, but said the debt amounts were exaggerated.
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