China’s new home sales by floor area declined in July from the previous month, likely due to slower project launches and subdued homebuying sentiment, said China International Capital Corporation (CICC) in a note on Tuesday.
The bank expects non-state-owned property developers to see more pressure on cash flow in the near term, given higher uncertainties over the recovery in home sales, and high volume of corporate debt maturities in the third quarter of the year.
Quality property developers may still benefit from improvement in fundamentals said CICC, which recommended China Resources Land, China Overseas Land and Investment, Yuexiu Property, Greentown China, C&D International Investment Group Limited, China Overseas Grand Oceans Group and Midea Real Estate on dips.
As for property management companies, the bank recommended Poly Property Services, China Overseas Property Holdings and China Resources Mixc Lifestyle Services Ltd.