A Chinese property developer typically takes two years to complete a project from start to finish. However, developers in China can pre-sell the projects before they are completed. The sooner a developer receives cash from pre-selling a project, the sooner the developer recycles capital and the stronger is its liquidity. However, the financial statements do not report directly the project stages at which the sales are made. Nevertheless, the information can be retrieved from multiple years of financial statements by solving effectively a multi-variable multi-equation mathematical problem.
In this report, Modtris models provide the solution for China’s big 3 property developers – Vanke, Evergrande, and Country Garden.Which one of China properties big 3 sells its projects the quickest and the most? (6 downloads)