Centaline's Zhang Dawei summarizes land king risk into one sentence: if prices don't rise 50 percent in the next year, many land kings will lose money on their land purchases.
Buying restrictions have seemingly ended rising prices, but we won't know for sure until credit growth adjusts. Presumably it will slow because most of the credit growth was demand side driven by homebuyers.
Caijing: 调控进行时 地王或从黑马利器沦为烫手山芋
In the history of Chinese real estate development, some radical developers played a "dark horse" role. With their high leverage, high debt ratio and bold action get high success, going from regional enterprises to become the country's leading enterprises. In the current round of real estate regulation, the "king" would from the "dark horse weapon" become a "hot potato"?