China property firms jump after big developers show smaller sales drop
SHARES in Hong Kong-listed Chinese property companies surged on Tuesday (Jul 2), after private data showed yearly sales declines for major Chinese property developers continued to narrow in June.
The Hang Seng Mainland Properties Index was up 3.5 per cent by noon, after jumping as much as 4.8 per cent earlier in the session.
Private developers Longfor Group, Shimao Group and Agile each surged more than 5 per cent, while state-backed China Resources Land and privately-owned CIFI Holdings gained more than 4 per cent.
The market is closely watching the impact a major government package of support measures launched in mid-May would have on stabilising the country’s ailing property sector.
Sales value at China’s top 100 real estate developers in June rose 36.3 per cent from May, while it dropped 16.7 per cent from a year ago, narrowing from the 33.7 per cent annual decline in the previous month, according to data from property researcher China Real Estate Information Corporation (CRIC).
Nearly one-third of these developers, mostly state-owned and state-backed companies including China Overseas Land & Investment, Poly Developments, Greentown China and China Resources Land, posted year-on-year gains in June sales, CRIC said, highlighting the polarisation in the sector.
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The research firm said it expects more home purchases after the raft of supportive measures, while the yearly drop in July would continue to narrow due to a low base last year.
Another property sector research company, China Index Academy, said on Monday the average price for new homes across 100 cities edged up 0.15 per cent month on month in June, their slowest pace in five months.
In May, Chinese authorities unveiled what they called a historic support package for the property sector that has been hit hard by a liquidity crunch since 2021 with many firms defaulting on debt. REUTERS
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