(Yicai Global) March 27 -- China Fortune Land Development Co. (CFLD) is in sound and stable condition, and reports that banks have stopped issuing loans to the company are untrue and unfounded, the well-known developer of real estate projects around Beijing said yesterday.

CFLD has normal channels to secure loans from banks, lenders have not stopped issuing such loans to it, its capital chain is operating normally, and it is repaying bond interest on time with no overdue interest. It is experiencing no cash crunches and has no plan to package the CNY20 billion assets of its Peacock City real estate project for sale, it said  in reply to reports it is suffering a capital chain rupture and offering substantial price cuts for buyers of apartments in its Peacock City project in Bazhou, a small city between Beijing and Tianjin in Hebei province.

CFLD already has clues indicating these false reports are spread in a planned and calculated manner, the statement said, adding that the company has initiated legal procedures against the relevant parties for defamation and untrue reporting.

The sale price of apartments in Peacock City project has dropped over half from CNY18,000 per square meter to CNY8,500 and  its strategy is to boost sales by offering a 50-percent cut from peak prices, given its sales target this year, it said.

Property markets in cities near Beijing have been contracting, dragged down by restrictions on home purchases. CFLD's contracted sales for houses in cities were down 72 percent annually last year.

CFLD's share price plunged by nearly 10 percent in intraday trading yesterday before closing down 6.84 percent at CNY31.73.