TO say that New World Development's recent retreat from its Beijing retail project was a result of China's credit crunch would make a splash - if that were the case.
This week, a New World official confirmed that the company had decided not to go ahead with the $700 million department store project in the capital's Xidan shopping district.
The reasons for the pullout, according to the official, were that the mainland's property market would suffer under the austerity programme and land prices in the big Chinese cities would fall to a more reasonable level.
The mainland partners' lack of cash due to credit tightening by the Chinese banks would also slow the building of some properties, he said.
Although the official's explanation is fine, it might not be the whole truth.
With the letter of intent struck in the middle of last year, the Xidan project represented New World's foray into mainland retail property.
