(Yicai Global) Dec. 13 -- Some 450 Chinese property developers declared bankruptcy in the first 10 months of this year as regulators tightened rules, more players entered the market and financing became increasingly difficult.

The figure was higher than the total throughout all of 2018, the Economic Information Daily, part of Xinhua News Agency, reported today.

The companies going broke are mostly small- and medium-sized enterprises in China's third- and fourth-tier cities, said Fang Ling, an analyst at China Real Estate Information, adding that these firms are not competitive and are unable to absorb risk. More and more firms have been declaring bankruptcy since the second half of last year and, given the ongoing scrutiny, the rate at which this happens will continue to increase, he continued.

China's three biggest developers made up 10.2 percent of all contracted sales during the first three quarters, up 0.4 percentage point from a year earlier, Fang added, saying companies ranking between fourth and 20th also increased their market share as larger firms begin to dominate the market.

Governments are restricting funding to the real estate sector and the China Banking and Insurance Regulatory Commission said in May that commercial banks, trusts and financial leasing companies may no longer finance real estate projects. Two months later it began cracking the whip on institutions and top executives and further cut funding channels, such as developmental loans and borrowing from overseas.

Real estate firms have also had to fork out more interest on their bonds, with the average price rising 0.52 percentage points to 7.03 percent during the first 10 months, according to the Economic Information Daily. Financial institutions have been showing a much greater preference for larger developers, as they are less likely to flunk on their debt, it added.

Editor: James Boynton