The recent collapse of a Chinese developer has raised fears over the stability of the mainland property sector, but Vincent Lo, CEO of Shanghai-based developer Shui On Land, says defaults will remain contained.
"I don't expect you'll see too many of these collapses because the market is actually still quite healthy," Lo told CNBC on Monday. "If you look at 2008-2009 [global financial] crisis, only one company was in trouble."
Earlier this month, Zhejiang Xingrun Real Estate, a property developer based in a small city south of Shanghai, defaulted on almost $400 million of bank loans, highlighting the vulnerability of small, highly levered developers in an environment of slowing sales.
Property sales in terms of floor space dropped 0.1 percent and fell 3.7 percent in terms of value in the first two months of the year.