Chinese Developers Rise on Better Sales Outlook: Hong Kong Mover
Chinese property shares rose in Hong Kong trading after developers reported better December sales.
A gauge tracking property shares on the Hang Seng Index (HSI) climbed 2 percent at the midday break, the most among five industry groups on the benchmark. Three of the 10 best performers on the MSCI China Index (MXCN) were Chinese developers. China Resources Land Ltd. (1109) rose 3.2 percent to HK$24.25, set for the highest since debut in 1996. China Overseas Land & Investment Ltd. (688) jumped 2.6 percent to a 10-year high.
Developers reported better sales at the year-end even as the government said it would maintain curbs on the property market. Home sales volume in the capital city of Beijing rose 64 percent last year, the highest in three years, China Business News reported today, citing local government data.
“Investors probably see the sales results as a good sign that developers’ earnings are more secure than those in other sectors,” Sylvia Wong, a Hong Kong-based property analyst at UOB Kay Hian Ltd., said in a telephone interview today.
Cifi Holdings Group Co. (884) rose 2.6 percent to the highest since its public offering in November after announcing a 75 percent jump in full-year sales last year. Evergrande Real Estate Group Ltd. (3333), China’s biggest developer by sales volume, surged 4 percent to the highest in eight months.
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