Reuters reports on China. "Government officials told Reuters on Tuesday that Zhejiang Xingrun Real Estate Co, based in the coastal city of Ningbo in Zhejiang province, is on the brink of bankruptcy. State media have estimated the company owes 15 domestic banks 2.4 billion yuan ($389 million) and individual investors another 1.1 billion, with only 3 billion yuan of assets on hand. By raising that money from individual investors, Zhejiang Xingrun's owner also broke Chinese law, and local officials told Reuters that the company's owner and his son are in custody, accused of illegal fundraising."

"Some industry observers noted growing instability among a group of Chinese property developers, in particular those that overindulged in speculation financed by money borrowed at high rates in the shadow banking market."

"'Underground private banks are very active in the Zhejiang and Jiangsu areas, and many companies have already gone bust because their owners personally borrowed a lot from these underground banks and then were not able to repay,' said an executive at a real estate developer with projects in eastern China, who spoke on condition of anonymity. 'We have been hearing a lot of cases like this but this one is of a much larger size,' he added. 'I think by letting this news go public, the government wants to send a message to the market.'"

The International Business Times. "The risk is particularly high in third- and fourth-tier cities, which accounted for 67 percent of housing under construction in China in 2013, according to Nomura economist Zhiwei Zhang. 'This risk does not seem fully recognized in the market partly because data are not readily available for these cities, and some investors may be misled by the boom in first-tier cities,' he said, adding that most investors aren't aware that first-tier cities (Beijing, Shanghai, Guangzhou and Shenzhen) only account for 5 percent of housing under construction."

"Zhang describes real estate as 'a pillar of growth for China' that makes up 16 percent of the country’s gross domestic product, accounts for 33 percent of fixed asset investment, 20 percent of outstanding loans, 26 percent of new loans and contributes 39 percent of government revenue, based on 2013 data. 'If it slows sharply, we see no obvious replacement to support growth,' Zhang said."

The Telegraph. "The Chinese newspaper Economic Daily News said Xingrun Properties, in the coastal city of Ningbo, is on the brink of collapse with debts of $570m, mostly owed to banks. The local government has set up a working group to contain the crisis. Nomura said the number of ghost towns has spread beyond the well-known disaster stories of Ordos and Wenzhou to at least eight other sites. Three developers have abandoned half-built projects in the 2.5m-strong city of Yingkou, on the Liaodong peninsular. They have fled the area, a pattern replicated in Jizhou and Tongchuan.'

"Yu Xuejun, the Jiangsu banking regulator, said developers are running out of cash. This risks undermining land sales needed to fund local government entities. 'Credit defaults will definitely happen. It’s just a matter of timing, scale and how big the impact is,' he said."

From Xinhua. "This week's property data may cheer up desperate buyers tortured by unaffordable housing prices. The sales value of residential homes in China dropped 5 percent year on year to 598.5 billion yuan (97.56 billion U.S. dollars) with the amount of floor space sold also down 1.2 percent in Jan.-Feb. 2014, according to data released by the National Bureau of Statistics. Property developers' investment in residential property grew 18.4 percent."

"'Housing prices surged too fast last year, especially in first-tier cities, which curbed the demand for investment and non-investment,' said Wang Xiaoguang, a researcher at the Chinese Academy of Governance. Wang said he believes that this year will witness a turning point in the real estate industry to put a full stop on the previous housing boom. 'Tightened credit policy, strained consumer demand and large inventory of unsold houses will create a period for the industry to cool down and adjust,' Wang said.'

"Zhu Zhongyi, deputy head of the China Real Estate Industry Association, estimated that the slowing economy will further push the real estate sector onto a smoother and more rational path. 'The property mania needs pains to ease,' Wang added."

The Global Times. "Many real estate companies have lowered prices or launched promotions for homes in Guangzhou, Beijing-based Economic Information Daily reported Monday. This is the first sign that first-tier cities in China have started to see home price drops. Zhu Zhuohan, regional manager of real estate consulting firm Centaline Property's branch office in Guangzhou, told the Global Times Monday that many local property developers have even rolled out direct price cuts. Guangzhou-based Times Property, for instance, is now offering a 12 percent discount for all its houses in the city."

"'Guangzhou's current average home price per square meter has dropped by 10 percent from January this year,' Zhu said."

The Standard. "Beijing officials are dumping their properties as they now need to report the number of flats they own. Units at the latest project of the nation's largest developer, Vanke, meanwhile, are carrying lower-than- expected price tags, putting heavy pressure on the capital's property market. A growing number of homes in Beijing are priced lower than the market with owners in a hurry to sell, the 21st Century Business Herald reported."

"Last weekend, a Vanke project in Beijing Daxing District, which is located in southern suburbs of the city, opened the sale at a price 3,000 yuan (HK$3,763) per square foot lower than market level. Last Saturday, a flat in northeast Beijing was sold for 300,000 yuan less than the market price. 'The owner didn't show up, authorizing a friend and an agency to make the deal. It is understood the owner was an official,' the report said."

From Forbes. "There’s more financial destruction power in these 12 words in quotes below than just about any in the English language: 'Subprime risks are contained.' Ben Bernanke 2007. 'Risks in China’s bond market are generally controllable.' Zhang Xiaojun 2014. The recent statements from Chinese leaders singing the same sad song we’ve all heard before so many times. Do you actually believe 13 guys in a room in Beijing can negotiate a soft landing in the most leveraged economy on earth?"