WHILE a growing number of Chinese real estate companies, especially small and medium-sized ones, are facing heavier financial pressure, the overall picture of the industry still remains optimistic, developers told an industry forum in Shanghai yesterday.

"It is said that many developers are facing very tough times but in my personal opinion, different companies are facing very different situations as some are really capital-affluent while some others do feel cash-strapped," Ren Zhiqiang, chairman of Beijing Huayuan Group, a major real estate developer in the Beijing, said during a forum organized by the country's leading property Website, www.focus.cn. "In fact, rash expansion plans will always be dangerous to real estate developers and cutting operation size might help the cash-strapped companies to get through."

The central government has imposed a tight monetary policy to fight against excessive liquidity. Real estate developers, the majority of whom rely heavily on bank loans, are now feeling somewhat cash-strapped as they find it harder to either get loans from lenders or raise funds from the stock market, industry people commented.

Meanwhile, Huang Nubo, chairman of Zhongkun Investment Group, another real estate developer in Beijing, said property firms could diversify for stable growth.

"The real estate market actually covers a lot more and more developers should find their own niche market to survive," said Huang.

The National Development and Reform Commission yesterday said housing prices in 70 major Chinese cities rose 10.1 percent in April from a year earlier, 0.6 percentage point lower than March.