Recently the Mainichi News on-line reported the following:
毎日新聞 2014年03月19日 19時43分（最終更新 03月19日 19時43分）
On the 19th it was learned that the management of a real estate company in Zhejiang of China which dealt with the development of high-class villa and residence had come to a deadlock due to a 3,500 million yuan (about 57 billion yen) debt. This was reported by the Chinese media. It was because the market price of houses had fallen, and if similar situations continued in succession, the worries over the bursting of the Chinese housing 'bubble' would likely become strong.
This company was seen as "a shadow bank" as it raised funds illegally by doing financial transactions other than through the regular banking loans, and if these funds could not be repaid, it would likely affect the financial market.
According to the China Securities Journal etc. it was a leading company in
that had failed. In the area surrounding the villas that were under
construction, house prices had gone down by more than half compared to about
four years ago. Ningbo
It is a wake-up call for those who have invested in the property market in