Shares of Zhenro Properties is slumping more than 22%, Zhongliang Holidngs down 7.8%, Greentown China sliding 6.9%, Yuzhou Group down 5.5%, Logan Group and China Resources Land falling 4.8%.
The sell-off comes as Chinese yuan weakens sharply against the US dollar after the US Federal Reserve chairman Jerome Powell affirmed that more interest rate hikes are likely ahead until additional progress is made on bringing down inflation.
“Nearly all FOMC participants expect that it will be appropriate to raise interest rates somewhat further by the end of the year,” Powell said in remarks for testimony he will deliver to the House Financial Services Committee.
In addition, new home sales in China in the first three weeks of June did not show a seasonal upward trend, with weak supply and demand being the main reason, said CICC in a recent note.
Last week, sales area of new homes in 61 sample cities rose slightly by 2% week on week, and the sales area of second-hand homes in 15 sample cities fell by 5%, but due to the high base last year, the former expanded the year-on year drop sharply to 41%, while the latter declined by 3%, compared to 13% rise in the previous week, it said. Read more …
