KUALA LUMPUR, Aug 15 — China’s attempts to stop money leaking from its borders is already having an effect overseas with demand dropping off for one developer in Johor.
The developer in question, Country Garden Holdings Co, marketed some of the 10,000 units in a new waterfront land development in Danga Bay, Malaysia, to buyers in China who now find it more difficult to fund their purchases, the Wall Street Journal reported.
Country Garden’s Malaysia project, its first international foray, was lauded as a success in its 2013 annual report, with contract sales of 7 billion yuan (US$1.13 billion), it said.
“But this year, it has suffered from cancellations, mainly from Chinese buyers, according to people close to the matter. Some have cited difficulty in obtaining mortgages or moving funds offshore as one of the reasons for cancelling,” the paper added.
“During a recent visit to its sales office, about a 10-minute drive from Singapore, a saleswoman said that with the Bank of China channel closed for now, clients should look into underground money-exchange channels,” the paper added.
