Chinese property developers slide in Hong Kong on plunging new mortgage loans in Feb from prior month, major developers’ loss warnings
Chinese property developers slide in Hong Kong on plunging new mortgage loans in Feb from prior month, major developers’ loss warnings

Chinese property developers slide in Hong Kong on plunging new mortgage loans in Feb from prior month, major developers’ loss warnings

Shares of Kaisai Group tumbled 25% in Hong Kong, Ronshine China sliding more than 11%, Powerlong down more than 4%, CIFI Holdings down nearly 4%, Times China down nearly 3%.

Data released by the PBOC on Friday showed that China’s bank loans to the household sector rose by 208.1 billion yuan in February, and of that, medium- and long-term loans rose by 86.3 billion yuan, sliding by 61.3% from the previous month.

In addition, Country Garden issued a profit warning, saying that that the group is expected to record a loss attributable to shareholders of about 5.5-7.5 billion yuan for the year ended 31 December 2022, compared to a profit attributable to shareholders of about 26.8 billion yuan in the previous year.

Logan Garoup said it’s expected to record a net loss of 7 billion – 9 billion yuan for the year ended 31 December 2022, mainly due to the decline in home delivery and decrease in income amid delays in construction amid COVID-19 pandemic, the year-on-year decline in sales due to the downturn in the real estate industry, and the impairment provision made for the property projects.