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In the News

China Housing Secures Required Permits for JunJing III Development Project

XI'AN, China, Dec. 19, 2011 -- /PRNewswire-Asia-FirstCall/ -- China Housing & Land Development, Inc., ("China Housing" or the "Company," NASDAQ: CHLN) today announced that the Company has secured all required construction and presale permits from the Xi'an government for the Company's JunJing III development project. As a result, China Housing will commence presales for this project immediately.

As of December 16th, the Company has secured approximately RMB 268.4 million in contract sales for JunJing III. This project has presold 396 out of 423 available units with an average selling price (ASP) of RMB 6,405 per square meter. Revenue from units sold will be recognized using the percentage of completion (PoC) method after formal contracts are signed with customers, which will start immediately.

Mr. Pingji Lu, the Chairman of China Housing, commented, "We are relieved to have finally secured the required permits to proceed with pre-sales of JunJing III. While this permit delay impacted all developers operating in Xi'an, we are encouraged that the local government has taken recent measures to ease its construction and presale permit restrictions. Overall demand for JunJing III's apartment units has been quite strong as evidenced by healthy ASP levels and pre-sales of over 90% of the units as of mid-December. The revenue recognition from these projects should occur in the fourth quarter of 2011 and the first quarter of 2012. We have an active pipeline of new projects heading into next year and continue to focus on projects that can result in strong future revenue and profit growth."

Web link: http://www.sacbee.com/2011/12/19/4132638/china-housing-secures-required.html

Study Finds 75% Construction Workers Work Without Contract in China

A study on the living conditions of construction workers in 4 major Chinese cities has found that 75 per cent of them are working without a contract, and among those who have a contract, more than 63 per cent do not have a copy of their own.

The study was conducted by university students and teachers in Beijing, Shanghai, Chongqing and Shenzhen, four of the most developed cities in China. In a report by the China Youth Daily, the study finds that, on average, construction workers within these cities are working 27 days a month, 9.9 hours per day with a monthly salary of 3,375 yuan (roughly 2,000 USD); an amount considered relatively low given their long working hours, according to Lu Huilin, a professor from Peking University.

Currently, many construction companies entrust their work to labor foremen, who are responsible for hiring and paying workers. This is a violation of China's Labor Contract Law, which requires companies to sign contracts with workers directly and pay them according to official regulations.

As a result of the current arrangement which prevails, workers cannot obtain legal contracts nor can their lawful rights be guaranteed. Li Xingfeng, a worker in Beijing says that he once worked for 20 days without pay. When Li asked if he could sign an official contract with his employer, they refused. "They wouldn't give me the contract and they asked me to leave," Li says.

Those who conducted the study believe that the reason for refusal to pay workers or delays in payments is due to the absence of a valid contract. The researchers suggest that the problem can be solved by enforcing payment regulations.

Web link: http://english.cri.cn/6909/2011/12/13/2941s671401.htm

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