Tuesday, March 13, 2012

China's property stocks fall as sales decline

Following the commitment by the central government to maintain its property cooling measures, share values of property developers in China fell as weak sales were recorded in the first two months of the year.

According to a recent report by the National Statistics Bureau of China, homes sales in the country dropped 25 percent in January and February, as compared to a 26 percent increase over the same period last year.

The Shanghai Composite Index’s measure of property shares fell 1.9 percent at closing, the biggest drop in two weeks and the highest among the five industry groups on the benchmark gauge.

Meanwhile, share values of Poly Real Estate Group Co, the country’s second-largest developer by market value, declined 3.9 percent, while stocks of China Vanke Co, China’s biggest developer, dropped 2.9 percent, the highest in a month.

“The data indicates the further slowdown of property sales,” said analysts at SWS Research Co.   
“Developers will continue to expedite sales by cutting prices further. The government’s strict stance on property controls won’t change at this critical moment.”

View the original article here

Source From Property Guru

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