China’s property stocks fell after the country reported weak sales for the first two months of the year as the government pledged to maintain its housing curbs.
China’s home sales declined 25 percent in January and February, the national statistics bureau reported March 9. That compared with 26 percent growth in the same period last year.
The Shanghai Composite Index (SHCOMP)’s measure of property shares dropped 1.9 percent at local closing, the biggest decline in two weeks and the most among the five industry groups on the benchmark gauge. Poly Real Estate Group Co. (6000048), China’s second- largest developer by market value, fell 3.9 percent, the most since Jan. 30, after reporting a 31 percent decline in sales in the first two months. China Vanke Co. (000002), the biggest, lost 2.9 percent, the most in a month.
“The data indicates the further slowdown of property sales,” wrote SWS Research Co. analysts, led by Kris Li, in a report today. “Developers will continue to expedite sales by cutting prices further. The government’s strict stance on property controls won’t change at this critical moment.”
Sales at Vanke dropped 27 percent in the first two months of 2012 from a year earlier. Sales last month slumped 40 percent from January, the company said.
Shanghai’s home sales volume fell 26 percent to 149,400 square meters (1.6 million square feet) last week from a week earlier, according to property consultant Shanghai UWin Real Estate Information Services Co.
The Chinese government is firm on property control policies and may introduce rules to enhance implementation if local governments don’t abide, Shanghai Securities News reported today, citing Wang Juelin, deputy director of the Ministry of Housing and Urban-Rural Development’s policy research.
--Bonnie Cao. Editors: Andreea Papuc, Malcolm Scott
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