Xinhua Finance Limited ("XFL", TSE Mothers: 9399 and OTC: XHFNY), China's premier financial information provider, releases today its report on "Credit Risks of China's Real Estate Sector" that identifies policy risk as the primary risk factor affecting the credit worthiness of the real estate industry. Xinhua Finance discusses in the report the status of China's real estate developers, and examines both business and financial issues challenging the industry. Xinhua Finance analyzes such issues from a perspective unique in the market and finds that dynamic government policy changes constitute the primary risk for the industry.
The report explains that China's real estate sector has benefited from the nation's strong economic growth and favorable government policy since the beginning of economic reforms. As a result the industry has for a long period of time enjoyed a remarkable expansion. But with the slowing of the economy and the tightening of credit, Xinhua Finance believes that the recent liquidity problems of the industry are the beginning of a process of unfolding credit risks associated with the nature of the industry that have accumulated over time.
