“Chinese Property Stocks Plummet as Country Garden Reports Record Losses and China Vanke Cancels Share Placement”
Point 1: The CSI 300 Real Estate index, tracking property stocks on mainland exchanges, dropped by 4.1% in morning trading, while Hong Kong’s Hang Seng Mainland Properties index declined by 1.5%, erasing early gains. This decline comes after Country Garden, once the largest developer by sales in China, reported a record loss of $7 billion for the first half of the year.
Point 2: China Vanke, another major developer, canceled a share placement worth up to Rmb15 billion ($2 billion) and released earnings showing a 19% decrease in profits. This cancellation and decline in profits highlight the challenges faced by China’s property sector, which is currently dealing with a renewed liquidity crisis.
Continuation…
The Chinese property market is experiencing significant turbulence as Country Garden and China Vanke face major setbacks. Country Garden’s $7 billion loss for the first half of the year marks its worst performance to date. This news has sent shockwaves through the industry and contributed to the decline in property stocks on mainland exchanges.
China Vanke’s decision to cancel a share placement worth up to Rmb15 billion ($2 billion) further adds to the concerns surrounding the country’s property sector. The company also reported a 19% decrease in profits, indicating the challenging operating environment faced by developers in China.
The decline in property stocks is reflected in both the CSI 300 Real Estate index and Hong Kong’s Hang Seng Mainland Properties index. The former dropped by 4.1% in morning trading, while the latter declined by 1.5%, erasing early gains. These indices serve as indicators of investor sentiment towards the Chinese property market.
Overall, these developments highlight the renewed liquidity crisis faced by China’s property sector. The challenges faced by Country Garden and China Vanke, two major players in the industry, underscore the difficulties in the current market environment.
Source: www.ft.com on 1693457888.