China Property Stocks, Vanke Gain Most in Week on Rising Home Sales Report
Stock Chart for China Merchants Property Development Co Ltd (200024)
China’s property stocks rose the most in a week, led by China Vanke Co., after Sina.com reported that weekly new home transaction volumes in the southern city of Shenzhen increased the most in four months.
The Se Shang Property Index gained 1.3 percent to 3,550.39 at 1:32 p.m. local time, the most since Aug. 13. Vanke, China’s biggest property developer based in Shenzhen, climbed 2 percent to 9.50 yuan. China Merchants Property Development Co. rose 4 percent to 20.55 yuan. Oceanwide Real Estate Group Co. added 3 percent to 9.71 yuan and COFCO Property (Group) Co. advanced 2.7 percent to 7.87 yuan.
Shenzhen’s new home transaction volumes jumped 72 percent last week to 843 homes from the previous week, the most since the end of April, Sina.com reported, citing local government data. Transaction volumes of existing homes rose 41 percent last week from the previous week, according to the report.
China’s property transaction volumes are “picking up” as the nation’s biggest developers including Vanke cut prices on new developments, said Michael Klibaner, head of China research at property broker Jones Lang LaSalle Inc., in an interview in Shanghai.
Shenzhen also plans to strengthen transportation links to Hong Kong in its new city plan from 2010 to 2020, according to a statement from the State Council posted on the government website yesterday. Hong Kong will control the population of long-term residents within 11 million by 2020, the statement said.
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