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Cash is the king again—China’s real estate sector shivers after top developer Vanke warns over survival


China Vanke, one of the biggest property developer in the country, made a headline over the weekend after it put "survival” as the keyword for its autumn meeting on Saturday, highlighting increasing challenges faced by developers amid a sector-wide slowdown.

Some say it’s just a kind of show to grab attention since Vanke's earnings remain solid. The company made a revenue of 105.97 billon yuan in the first half of 2018, surging 51.8 per cent from a year earlier and its profit climbed 29.9 per cent year-on-year to 9.12 billion yuan, far from being a company with survival at stake and healthier than most developers.

However, others believe the warning does not come out of thin air and instead, arise from increasingly urgent need for cash.

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