` China's Developers are Verging on the brink of Bankruptcy as they borrowed Heavily at High Interest Rates '

#AceFinanceNews – CHINA – April 03 – Many of China’s Estate Developers are verging on the Brink of bankruptcy, as many borrowed heavily at high interest rates. The fact that borrowing at the time was plentiful the risk was a lot greater and now they many estates remain empty.

Though interest payments remain high and still require servicing.

Government Official Analysis has shown that the following indicators apply to this situation.

  1. Some of the second and third tier cities housing prices under pressure, as still remaining empty.
  2. Analysts expect more regional small developers will go bankrupt, as the city dwellers are reticent given the present worldwide situation.

The fact that prices still remain high will lead to the decline in building projects as more banks that are risk avert, tighten criteria of their lending.

The real outcome in the long run will be that over priced estates, will remain vacant. Whilst cash-strapped developers still have to either go bankrupt or are forced into liquidation by the banks.

Ace News Services 2014
IKD/ANS/2014
http://acenewsservices.com/

#ans2014, #banks, #building, #china, #chinas, #city, #developers, #dwellers, #high-interest-rates, #ikdans2014, #projects

` China Seals the Deal for Purchase of 100 of Russia’s ` Sukhoi Superjet ‘ Worth 3.5 billion US Dollars ‘

#AceFinanceNews – BEIJING – March 25 – China’s private O-bay Aircraft Company, based in the Henan province, intends to buy 100 Russia Sukhoi Superjet-100 (SSJ-100) planes from Sukhoi company to the total worth of 3.5 billion US dollars, the Beijing-based China Daily reported, noting that the corresponding agreement had been signed on Saturday.

The report says that the Russian company will provide assistance to the Chinese side in setting up an assembly plant in Zhengzhou (administrative centre of Henan). Several other Chinese companies have also displayed an interest in this project.

The newspaper reports that Russia’s Sukhoi company is well known in China thanks to its military planes. The Sukhoi civilian assembly line is to be put into operation in 2016 and reach full capacity in 2018.

The project is yet to be approved by the Chinese State Council, according to China Daily.

It notes that the Russian plane will become direct competitor to the regional ARJ-21 plane that is being created by China’s aircraft building corporation.

Chinese Finance News

#AFN2014

#beijing, #china, #china-daily, #chinas