Country Garden Rises to Five-Year High on Sales: Hong Kong Mover
Country Garden Holdings Co. (2007), controlled by China’s richest woman Yang Huiyan, rose to the highest in more than five years in Hong Kong trading after it exceeded its 2013 property sales target by the end of September.
Shares of the developer, which resumed trading at 1 p.m. in Hong Kong, rose 8 percent at HK$5.55 at the close of trading, the highest since June 2008.
The developer had contracted sales of 64.7 billion yuan ($10.6 billion) in the nine months through Sept. 30, compared with its 62 billion yuan sales target for the year, it said in a statement to Hong Kong’s stock exchange today.
“The sales data are better than what investors expected,” said Jinsong Du, a Hong Kong-based property analyst at Credit Suisse Group AG. “The company increased incentives for their sales staff this year and its properties in Malaysia also helped boost the data.”
Home sales in China have continued to improve as the world’s second-biggest economy shows signs of a sustained rebound and the government refrains from more cooling measures. New home prices in almost all of the cities tracked by the government gained in August.
Trading in the stock was halted at 9 a.m. pending the release of an announcement in relation to possible insider information, the Foshan, Guangdong province-based company said in an earlier statement to the stock exchange.
Country Garden received buyer subscriptions for 109.5 billion yuan of properties so far this year, the Hong Kong Economic Journal reported today, citing a memo to staff from President Mo Bin. Subscriptions, which are different than contracted sales, reached 18.5 billion yuan over the seven-day National Day public holiday that started Oct. 1 and ended yesterday, it said, citing the memo.
The figures in the Hong Kong newspaper were “preliminary” and the company will review its internal procedures to ensure employees keep confidential any sensitive or confidential information, Country Garden said in the later statement.
Subscriptions don’t necessarily lead to contracted sales, the data that Chinese developers usually report, said Kenny Wu, a Hong Kong-based analyst at JI-Asia Research Ltd. Buyers pay only a small deposit to show intent of purchase before signing contracts with developers and can always pull out.
New home sales in Beijing almost doubled in the first six days of the week-long holiday from a year earlier, China Securities Journal reported today, citing the municipality’s commission of housing and urban-rural development.
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