China's Poly Group Corp is facing a different battle after homeowners in the state-owned developer protested over their promise to build facilities that have not materialized to this day.

According to the Wall Street Journal, a 33-year-old saleswoman named Shen Yuan, who bought a unit under one of the developer's projects, is complaining about Poly Group's inability to build what they promised - an international school, an ice skating rink as well as a movie theater. Shen, in her statement, said "I felt the promised facilities nearby would be great. I didn't think that Poly, as a state - owned company would lie to us."

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Poly Jordan International, the developer of the units, said that the plans have not materialized because of various reasons such as slow economy in China and the lack of demand from potential buyers. Despite this, Shen still thinks they were lied to and convinced other homeowners to protest in front of the developer's office. Poly Jordan International under the Poly Group Corp has ventured in Real Estate despite the Poly Group Corp's reputation  as suppliers of weapons and rockets, as well as, makers of ships. In China, the increasing number of state-owned home developers has become a challenge not only to Poly Group Corp, but to all the other Real Estate developers as they compete with each other.

In another post by the Wall Street Journal, profits of businesses who are state-owned or backed by the government came from Real Estate. Other state-owned enterprises in China, aside from Poly Group Corp, includes Cofco Corp (Trade), China Railway Group and China Resources National Corp.

In 1993, the Poly Group was formed by the People's Liberation Army, working on arms and weapons, real estates as well as mining and energy. Two years ago, the United States imposed sanctions on their affiliate Poly Technologies for making a deal and supplying arms and weapons to restricted regions under the controlled list. Poly Technologies denied the claims and sanctions ended in February. The Poly project also had troubles in their Joffre County residential projects.

TagsChina's Poly Group Corp, Poly Group Corp, complaints, Poly Technologies, Poly Jordan International