Developers' Great Escape: Dump Homes Onto Newly Hired Employees

Finance reporter Xu Mingtian of Caijing says developers are selling unfinished buildings to their own workers (or their friends and relatives), who earn a commission. Developers are rapidly hiring new employees to move more property, "brainwashing" them with intense training that leaves them owning a new house and mortgage, while the developer pays off his debts, locks up, throws away the keys and rides off into the sunset.

Some employees are willing to play along, earning their commission and then sending the bank jingle mail. Others are buying (or own) multiple properties and take out loans at high appraisal values, then walk away. Banks take losses when they auction the homes at discounted prices, driving up the amount of bad loans.

有的开发商已经把房子卖给了员工

Great Escape developers have quietly started.

I heard someone say that some developers to cover separate house staff, contract staff to sell. Can buy a buy a set, you can buy several sets of buy multiple sets, more suites to relatives and friends. Contract employees took to the bank loan to buy a house. Employees get the house and the commission, the developers get loans. This may be the last developer to earn money. Situation is bad, escaped leave, bad debt, and left the bank employees. Anyway, the house is sold. Not a loan, it means that the house was sold to the bank.

Some developers even more specifically to recruit new employees, devoted to brainwashing training, buy a suite, from bank loans, to get the commission leave. Some young people in order to make money, regardless of reputation behind it, and are willing to do it.

And how people suites also packed the house to real estate as collateral, go to the bank loans, through tricks, not only to the money from the bank loan, and property valuation is also high. Get our hands on the money, not the loan, the bank can only auction property.

Recently, the bank loan bad debt soared, these operations are one of the reasons.

Meanwhile, at the bigger developers, executives are walking away. Xu says the executive exodus at Vanke is due to the company giving shares to executives instead of cash.

Last week, Mao Daqing resigned from Vanke, which is also seen as a signal for the housing market. Caixin:

The head of China Vanke Co. Ltd. says the property developer will forge on with changes made last year that required executives to hold stock in the company even as a second vice president announced his departure.
Vanke Vice President Mao Daqing said on March 8 he is leaving the company. Another vice president, Xiao Li, resigned in November to join the online property service company Fangdd.com. The two had worked at Vanke for more than a decade.

iFeng: 媒体：开发商的大逃亡已悄悄展开 烂帐留给银行和员工