China’s top high-end developer Greentown China Holdings asked its staff to accelerate cash inflows “on all fronts” and speed up sales, according to memos seen by Bloomberg, amid escalating regulatory scrutiny of the sector.
The Hangzhou-based builder urged faster sales, redoubled efforts to collect accounts receivable and called for strict control over payments, according to the memos. Moves to speed
up sales include shifting those originally scheduled in 2019 to this year, provided the projects are unhindered by pre-sales pricing restrictions.
Chinese developers have become more reliant than ever on their own project sales for funds after regulators moved to further restrict financing to the sector and escalated a campaign to cool property prices.
That has left developers exposed to market swings and the whims of local officials, who can cap apartment prices when issuing pre-sales licences for new residential projects.
Country Garden Holdings Co., China’s biggest developer, in April urged employees to quicken home sales while threatening fines or dismissals for those too slow in getting their projects to market.
Greentown will press ahead with its strategy to “sell early, sell more and sell fast,” the firm said in the memos.