Average debt-to-equity ratio of Chinese developers is 68%, a small step to the 70% troublezone

The financial position of Chinese developers continues to deteriorate. Chinese financial markets focus on a debt-to-equity ratio of 70% as a sign for when developers may begin having trouble repaying their debt.
地产500强负债均值68% 距70%极限仅半步
According to WIND Information and Statistics, as of noon March 21, Shanghai and Shenzhen A total of 32 real estate companies announced the 2011 annual report. Among them, 21 the amount of the liabilities grew 10 liabilities rose by more than 30%, 9 gearing ratio exceeding 70%.
32 Housing prices liabilities amounted to 481.84 billion yuan, compared with 370.652 billion yuan in 2010, an increase of 111.188 billion yuan, an increase of 30%. Among them, the total liabilities of the leading housing prices Vanke 228.376 billion yuan, accounting for 47% of the total liabilities of housing prices in 32, its assets and liabilities increased from 75% to 77%. Offshore real estate About News Total liabilities increased from 59.6 billion yuan at the end of 2010 to 71.5 billion yuan at the end of 2011.
A 30% increase in liabilities is typical at the end of a bubble, as asset values rapidly increase.
A sharp rise in asset-liability ratio at the same time, most developers inventory turnover decreased significantly, the inventory period last year also up sharply. The data show that 21 of the company's stock rose, accounting for 65.63%. Vanke A, China happiness 7 Housing prices late last year, inventory rose by more than 30%.
I previously discussed some inventory and debt/equity ratios in Chinese real estate market on the verge of explosive price declines and Chinese developers debt/equity ratios as of Q3 中国开发商的资产负债率.

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