GREENTOWN China Holdings, China’s top high-end developer, has asked its staff to accelerate cash inflows “on all fronts” and speed up sales, according to memos seen, amid escalating regulatory scrutiny of the sector.

The Hangzhou-based builder urged faster sales, redoubled efforts to collect accounts receivable and called for strict control over payments, according to the memos. Moves to speed up sales include shifting those originally scheduled in 2019 to this year, provided the projects are unhindered by pre-sales pricing restrictions.

Domestic developers have become more reliant than ever on their own project sales for funds after regulators moved to further restrict financing to the sector and escalated a campaign to cool property prices. That has left developers exposed to market swings and the whims of local governments, who can cap apartment prices when issuing pre-sales licences for new residential projects.

Country Garden Holdings Co., China’s biggest developer, in April urged employees to quicken home sales while threatening fines or dismissals for those too slow in getting their projects to market.

Greentown will press ahead with its strategy to “sell early, sell more and sell fast,” the firm said in the memos. “Business will center around operational cash inflow from sales.”

Management of operational cash flow is a “normal move” that’s reiterated every six months, the company’s media representative said.

The company’s cash level is no less than 50 billion yuan (US$7.5 billion) on average, at a “sufficient and safe” level. Its credit position is ample for normal operational needs and can support growth, the company said. (SD-Agencies)