A Shakeout Looms for China's Homebuilders

As housing cooled, “Cement Shen” was unable to repay loans
Unfinished houses at Zhejiang Xingrun’s development in Fenghua Photograph by Gregory Turk/Bloomberg

Amid a cluster of half-built brick townhouses surrounded by peach groves on the outskirts of Fenghua city, workers could be seen taking down metal scaffolding and hauling away steel plates last month. They had heard that Zhejiang Xingrun Real Estate, the company building the housing development called Peach Blossom Palace, was insolvent. “The developer owed us hundreds of thousands of yuan” for scaffolding and steel, said workers Xie and Wang, who would only give their surnames. “We are taking these materials back for now because there’s no work here.”

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