Chinese Developers Rise on Better Sales Outlook: Hong Kong MoverBloomberg News
Chinese property shares rose in Hong Kong trading after developers reported better December sales.
A gauge tracking property shares on the Hang Seng Index climbed 1.7 percent at the local close, the most among five industry groups on the benchmark. Three of the 10 best performers on the MSCI China Index were Chinese developers. China Overseas Land & Investment Ltd. jumped 2.4 percent to HK$25.30, a 10-year high. China Resources Land Ltd. rose 0.9 percent to HK$23.70, the highest since debut in 1996.
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. rose 2.6 percent to HK$1.61, 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., China’s biggest developer by sales volume, surged 3.6 percent to HK$4.66, the highest since June 13.
Agile Property Holdings Ltd. jumped 6 percent to HK$12.68, the highest since July 2011.