For the pre-sold units, consumers pay the full price of their homes, delivering a lump sum to escrow accounts. In theory, developers are only supposed to tap those holdings to pay construction bills, or when they have delivered the apartments to consumers. But in practice, developers often treat that pot of money as free cash to be used for things like debt repayments.
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Analysis | Why Investors Are Fleeing China’s Investment-Grade Property Bonds – The Washington Post
For the pre-sold units, consumers pay the full price of their homes, delivering a lump sum to escrow accounts. In theory, developers are only supposed to t…….
