BEIJING, April 12 (Xinhua) -- Chinese property developers are suffering from a slump in cash flow amid government tightening measures meant to battle rising inflation and rein in speculation in the housing market, according to a report by a financial information provider.
The free cash flow of the 84 property developers that had filed their annual reports for 2010 to the Shanghai Stock Exchange by Monday stood at negative 70.59 billion yuan (10.79 billion U.S. dollars), according to Wind Information, a Shanghai-based financial data provider, in a report on its website Tuesday.
The developers' free cash flow, referring to their operating cash flow after capital expenditure spendings, came in sharp contrast to the 115 billion yuan of 2009, according to the report.
The figures came a week after China's central bank raised the benchmark interest rates by a quarter of a percentage point to 3.25 percent for one-year deposits, and 6.31 percent for one-year loans.
This is the fourth time in less than six months that China has raised interest rates in an attempt to battle the rising inflation weighing on consumers and businesses in the world's second largest economy.
The rate hike adds to six official increases in the bank reserve requirement ratio since October last year, bringing it to a record high of 20 percent.
In addition to monetary policies that have raised developers' borrowing costs, 35 major cities restrict residents from buying second or third homes, as well as some outright bans on buying second or third homes implemented in some cities. The measures also include higher down payment requirements for mortgages, and property taxes in Chongqing and Shanghai.
