China Vanke Co. (000002), the biggest developer by market value traded on the nation’s exchanges, said third-quarter profit rose 18 percent as stronger demand from homebuyers defied government efforts to curb prices.
Net income jumped to 1.6 billion yuan ($263 million), or 0.146 yuan a share, from a year earlier, the company said in a filing to the Shenzhen stock exchange today. Revenue increased 43 percent to 22 billion yuan.
China’s home prices rose in all but one city in September for a fifth month as the government refrained from introducing more nationwide property tightening policies that would hinder economic growth. Vanke’s contracted sales increased 33 percent in the first nine months from a year earlier to 128.5 billion yuan, the company said.
“We took a proactive sales strategy this quarter and continued to target buyers who buy homes for self-use,” Vanke said in the statement.
The company, which had 37.6 billion yuan of cash at the end of Sept. 30, invested in 32 projects in the third quarter and plans to take “a prudent investment strategy in future,” according to the statement.
Chinese property developers will record milder year-on-year sales growth in the last quarter of this year, Moody’s Investors Service said in an e-mailed statement today.
A Hong Kong unit of Vanke will invest as much as $442 million to buy 884 million of shares in the initial public offering of Huishang Bank Corp. (0886140D), according to terms of the deal obtained by Bloomberg News today.
To contact Bloomberg News staff for this story: Bonnie Cao in Shanghai at email@example.com
To contact the editor responsible for this story: Andreea Papuc at firstname.lastname@example.org