Vanke reports first half-year loss in more than two decades

CHINA Vanke reported a half-year loss for the first time in more than two decades, underscoring the pressure on the property developer as it tries to pay off debts during the country’s unprecedented housing slump. 

Shenzhen-based Vanke reported a net loss of 9.85 billion yuan (S$1.8 billion) in the six months ended June 30, its first on a semi-annual basis since at least 2003. That’s higher than the upper range flagged by the developer last month. It follows full-year profit of 12.2 billion yuan last year. 

China’s years-long property crisis is taking a toll on the closely watched developer, as the government’s supportive measures have yet to materially reinvigorate homebuyer demand. The state-backed company, once considered one of the more sound players in the industry, has been raising funds and looking to sell assets to calm investor concern over liquidity stress.

Vanke’s loss signals a sharp downturn in the second quarter, after it lost 362 million yuan in the first three months. The slowdown in China’s market has deepened since then, as sales and prices continue to fall. Local governments are dialling back intervention over pricing of new residential projects, driving developers to offer deep discounts to lure buyers. BLOOMBERG