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Factional Battles Are Behind China's Real Estate Decline: An In-Depth Look
Several major companies in China's real estate industry have taken major blows financially. But the issue may be deeper than just surface business, and may point to factional struggles within the Party and recent moves meant to impact the finances of rival Party leaders. We can start by looking at one of the major players in the Chinese real estate market, the publicly listed Greenland Holdings, also known as Greenland Group. The company owes tens of millions in late payments, and its debt is expected to only grow, and it has been facing problems in China, including being blacklisted in some areas for allegedly owing money to migrant workers. Reports say that the company’s cash flow fell by more than 49 percent since last year, going from around 8.1 billion yuan last year, to around 4.1 billion yuan at the first half of this year. We'll take an in-depth look at this company, and how its decline ties to the broader issue of factional battles in China. This story and more in this episode of Crossroads.