S&P: China property developers face volatility

Standard & Poor's said in a report that operating conditions will prove challenging for Chinese real estate developers in 2008.

Liquidity could dry up if market conditions do not improve, S&P said, making it difficult for some players to maintain their growth momentum and dealing a crippling blow to others.

"Many small, cash-strapped developers will not survive the harsh operating conditions," S&P credit analyst Bei Fu said in a written statement.

"Our rated developers should be in a better position than most unrated domestic peers, given their stronger balance sheets and reasonable cash holdings," Fu said. "But financial discipline and liquidity will ultimately determine the winners and losers."

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