Payable is the New Debt for China’s Top Developers

Predict, Not Extrapolate.

For China’s property developers, there are three main sources of funding to support land acquisition and property construction – debt, pre-sale, and increase in payable. Debt, either bank loans or bonds, must be repaid with cash at a pre-defined maturity date. Pre-sale, the proceeds from preselling uncompleted properties, is repaid in kind by delivering completed units to the buyers. The last source of funding, payable, is often neglected by analysts in its importance.

Payable is the New Debt for China’s Top Developers (46 downloads)

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