[ad_1]
By Yongchang Chin
China Vanke Co.’s H shares fell 6.0% at the start of trading on Monday after the company posted a decline in first-half net income and said it expected the real estate market. The country weakened in the second half of the year, weighed down by Beijing’s efforts to dampen the country’s real estate market.
China Vanke said on Sunday that China’s first-half new home sales rose, but that was due to a weak base as the market had been weak in the first six months of 2020.
The Chinese residential real estate market could weaken in the second half of the year, as monthly sales of new properties are already down. Citing data from China’s National Bureau of Statistics, the real estate developer noted that June home sales fell 7.5% year on year and home sales income for the month fell 8.6%. %.
China Vanke noted that while domestic investment in real estate developments in the first half of the year increased 15% year-on-year, the total built area of new construction projects increased only 3.8%. This is still 4.0% less than in the first half of 2019.
The company said it will improve the efficiency of its finances and speed up payment collection in a complex business environment in the second half of the year.
The Hong Kong-listed stock fell from its Feb. 25 high of HK $ 33.55 to trade at HK $ 20.95, bringing its year-to-date loss to 22%.
China Vanke’s A shares were down 6.7% to CNY 19.50, dropping 32% year-to-date to their lowest level since May 2017.
Write to Yongchang Chin at [email protected]
Source link
