By Yongchang Chin
China Vanke Co.’s H-shares fell 6.0% in early trade Monday after the company posted a fall in its first-half net profit and said it expected the country’s real estate market to weaken in the second half of the year, weighed by Beijing’s efforts to rein in the country’s property market.
China Vanke on Sunday said first-half new homes sales in China grew but this was due to a low base as the market had been weak in the first six months of 2020.
China’s residential real estate market could weaken in the second half, with monthly sales for new properties already declining. Citing data from China’s National Bureau of Statistics, the property developer noted that June’s housing sales fell 7.5% on year and home sales revenue for the month dropped 8.6%.
China Vanke noted that while nationwide investments in property developments in the first half grew 15% on year, the total built area of new construction projects only rose 3.8%. This was still 4.0% lower than in the first half of 2019.
The company said it will improve the efficiency of its finances and speed up payment collection amid a complex business environment in the second half of the year.
The Hong Kong-listed stock has dropped from its Feb. 25 high of HK$33.55 to trade at HK$20.95, taking its year-to-date loss to 22%.
China Vanke’s A-shares were last 6.7% lower at CNY19.50, losing 32% since the beginning of the year to reach its lowest level since May 2017.
Write to Yongchang Chin at firstname.lastname@example.org
(END) Dow Jones Newswires
August 30, 2021 00:01 ET (04:01 GMT)
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