China Vanke Co. and Poly Real Estate Group Co. paced gains by Chinese developers as signs of a deepening economic slowdown spurred speculation the government will hold off adding to property curbs.
Vanke, the nation’s biggest listed developer, rose 2 percent to 8.49 yuan in Shenzhen trading at the 11:30 a.m. local time break, set for its highest close in four months. Poly Real Estate, the second largest, added 1.7 percent to 12.79 yuan in Shanghai. A gauge of property stocks gained 0.4 percent today, the only advance among the five industry group on the benchmark Shanghai Composite Index, which dropped 0.8 percent.
Industrial production expanded at the weakest pace in 11 months in July and retail sales growth slowed as the government limited lending for property speculation and forced factory closures to meet energy-efficiency targets. China’s property prices rose at the slowest pace in six months in July, climbing 10.3 percent, the statistics bureau said this week.
“I don’t think there will be further measures aimed at cracking down on the real-estate industry,” said Shen Aiqin, a property analyst at GF Securities Co. in Guangzhou. “China’s housing demand is still there. We expect sales volumes will start to pick up soon with some slight drop in prices.”
The Shanghai Composite’s property index has slumped 23 percent this year as the government imposed higher down-payment and mortgage rates for multiple-home buyers and instructions for lenders to halt third-home loans in areas with “excessive price gains.” The banking regulator said Aug. 6 that the government will maintain policies to cool the market.
China Merchants Property Development Co., a Shenzhen-based developer, advanced 4.7 percent to 19.67 yuan, heading for its biggest gain since July 19. Citichamp Dartong Co., which is based in the southeast province of Fujian, added 3 percent to 10.48 yuan.