The Cash Flow News Weekly

Just when we thought the Chinese were unstoppable in their pursuit of growth – even they need to manage their businesses well to avoid cash flow issues.  Here’s a truncated extract of an interestingly article I read recently and one where cash flow concerns are now a strong focus in their property developing sector:

“A headline-making debt woe afflicting a small Chinese property developer has highlighted an ongoing cash-flow headache in the sector… investigation showed that plummeting land prices was one of the major contributors……”More property developers will face similar pressures as transaction volumes slow and cash flow conditions tighten……falling price of land in Fenghua is consistent with the deceleration of home price growth……Deceleration of home price growth has changed the psychology between home buyers and property developers and boosted a wait-and-see sentiment,..….meanwhile, a lackluster property sector has made banks more cautious……With eyes on cash flow, some developers have chosen to cut prices to cash in……”We may see some price cuts in two or three months,” “

To read the full article click here

That’s all for today, have a great weekend,

Alan J McCafferty, CEO & Founder, Simply Cashflow