Ma Yun (Jack Ma), the CEO of Alibaba, recently supported his staff to purchase real estate from one of his best friends Weiping Song who is in charge of the real estate developer Green City. Although Ma provides interest-free loans to his staff for this, also the real estate company offers special discount for this group purchase. Many people still believe that Jack Ma is just doing his favor to help his friend.
Property prices fall in many big Chinese cities for several months since the central government carries out a series reform to cool down the China’s housing market. The Green City is one of the real estate companies that suffer from this reform. Transaction volumes fall, home prices stop rising but the real estate developers have to pay annual interest costs of 14% to 70% on their loans, small or middle size developers may run out of cash soon if the Chinese government does not ease up the tight credit policy.
But can Jack Ma save Green City? Will the housing price continue falling or is the turning point of the housing prices coming?