Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Would You Live In One Of These China Cities?

Published 03/20/2014, 06:21 AM
Updated 03/20/2014, 06:30 AM
Would You Live In One Of These China Cities?

Would You Live In One Of These China Cities?

By Michelle FlorCruz - China is about to be littered with even more “ghost cities” as one of the nation’s biggest land developers faces collapse. One of China’s largest developers, Zhejiang Xingrun Real Estate Co., also has one of the largest debts to repay.

According to various reports, Xingrun has more than 3.5 billion yuan, around $570 million, in debt, and will leave several partially completed projects across the country empty, adding to the nation’s eerie collection of “ghost cities.”

Ghost cities are the result of prematurely built and underfunded urbanization projects that lose backing midway through completion. Because of China’s breakneck economic growth, projects were started all over the nation and they are are now being affected by China’s intentionally slowing economy and cooling real estate market.

© Reuters. Residential homes line a deserted street in the Kangbashi district of the town of Ordos in China's Inner Mongolia Autonomous Region May 11, 2011. About 30 km (19 miles) north of Dongsheng is the Kangbashi district of Ordos, which means 'palaces' in the Mongolian language, an area filled with thousands of residential apartments and duplex-style homes, built to house mainly workers for the nearby coal mines just outside the town. However, the estimated one million people that were expected to move into or visit the district's now decaying buildings, have yet to appear.

As China’s real estate market remains healthy in top-tier cities like Beijing and Shanghai, the collapse has hit many of the nation’s tier 3 and 4 cities and other areas that have prematurely pushed for urbanization. Permanent reminders are seen in various half-built extravagant structures and abandoned large scale projects in some of the most rural areas.

The collapse of this particular company will result in ghost cities reaching the city of Ordos, located in China’s northern Inner Mongolia province. 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.