May 8 (Bloomberg) -- SouFun Holdings Ltd. plunged the most in three years, leading a drop in Chinese stocks trading in New York after the real-estate information service provider said revenue this year will probably trail analysts’ estimates.
The Bloomberg China-US Equity Index of the most-traded Chinese stocks in the U.S. slid 1 percent to 98.14 yesterday in New York. SouFun, which operates the country’s biggest real-estate information website, plunged 9.4 percent, the steepest drop since November 2011. E-House China Holdings Ltd., a real-estate agent, fell for a third day.
SouFun maintained a 2014 revenue target range of $780 million to $796 million. The average estimate of analysts surveyed by Bloomberg was $823 million. The revenue forecast comes after a Centaline Group survey this week found home sales in 54 cities during the May 1 to May 3 holiday sank 47 percent from last year. Credit Suisse Group AG said yesterday that banks may stop allowing home buyers to use personal loans for down payments.
Some investors “are fretting about the revenue result,” Jeff Papp, senior analyst at Oberweis Asset Management Inc., which oversees $1 billion in Lisle, Illinois, wrote in an e-mailed response to questions. “The key is what actions are taken in the property market.”
SouFun sank to $10.52. E-House declined 4.1 percent to $8.
The Shanghai Stock Exchange Property Index posted a sixth consecutive decline yesterday, its longest losing streak since late February, dropping 1.4 percent. The 24-member gauge has slid 6.7 percent from this year’s high on April 25 as concern mounted that China’s property market is weakening.
Land sales in 20 major Chinese cities fell 5 percent in March from a year earlier, the biggest drop in at least a year, according to China Real Estate Information Corp. data compiled by Bloomberg. The value of land sales in third-tier cities declined 27 percent last month, according to SouFun data.
The Bloomberg gauge of Chinese stocks trading in the U.S. has slumped 6.6 percent from this year’s high on March 6 amid signs that the world’s second-biggest economy is cooling. Manufacturing contracted for a fourth month in April, according to a private survey.
Yanzhou Coal Mining Co. rose 0.8 percent to $7.56 in New York today, the first advance in three days. China Unicom (Hong Kong) Ltd., the country’s No. 2 phone company, gained 3.2 percent to $15.93 in the best performance on the Bloomberg gauge.
The iShares China Large-Cap ETF, the largest Chinese exchange-traded fund in the U.S., declined 0.4 percent to $34.61. The Standard & Poor’s 500 Index advanced 0.6 percent amid optimism that the Federal Reserve will continue to support the U.S. economy. The Hang Seng China Enterprises Index in Hong Kong retreated 0.9 percent. The Shanghai Composite Index also fell 0.9 percent.
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