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Vanke sets aside a healthy 'nest egg'
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The risk of Chinese real-estate developers defaulting on their debts soared to a record last week over concerns developers will need to borrow more to fund expansion or risk losing market share to rivals.

Larger developers may be able benefit from a slowdown in housing prices if that drives smaller competitors out of business, making property available at bargain prices, Standard & Poor's wrote.

Vanke has launched massive sales promotions in a number of Chinese cities, including Shanghai, Shenzhen, Guangzhou, Chengdu and Beijing - an approach, according to many industry experts, aimed at driving smaller rivals out of business.

(Shanghai Daily February 29, 2008)

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