Debts of 63 real estate companies: 586.7 bln yuan
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Despite a series of strict government housing policies passed in April, most real estate developers still pulled in huge profits in the first half of the year, according to interim reports released by 63 companies as of Sunday.
Total net profits of the companies reached almost 13.83 billion yuan (US$2 billion), a year-on-year increase of 36 percent. Many organizations bought real estate stocks at bottom price again in the second quarter.
But these companies also reported massive debt. Total debts by the end of June amounted to 586.7 billion yuan (US$86 billion).
An expert said that due to the tightening of main financing channels, their capital chain is near broken. Huge amounts of debts against profits may cause big troubles for these companies, unless their loans are all long-term.
China's business press carried the story above on Monday. China.org.cn has not checked the stories and does not vouch for their accuracy.
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