Greentown’s Song Weiping saw his profits drop in 2013
The reporting season for China’s listed developers continued this week, Greentown and Sunac bought more Shanghai land, the HSBC PMI showed further signs of a slowdown, and a new website has shown up to help Chinese rich folks buy homes overseas.
Here’s a quick walk through the day’s headlines:
Greentown Profit Dipped in 2013
Developer Greentown China Holdings Limited reported a dip in profits in 2013, with profit before taxation of RMB 9.15 billion for the year, down from RMB 10.26 billion in 2012. After spending itself into financial trouble in 2011, Greentown sold a stake to Hong Kong’s Wharf in 2012, but only after selling assets to SOHO and other developers. In 2013, the company invested to rebuild its land bank after securing new funding.
HSBC PMI Slides Still Lower to 48.1
The Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics, which is relied on as a leading indicator for the nation’s economy, dropped to 48.1 in March according to statements from the companies. The mark is a decline from the 48.5 number in February, and any number below 50 is considered a contraction. A sustained reading below 50 can be seen as raising the chance that the government will move to stimulate the economy.
New Website to Sell Overseas Homes
A new website has joined the crowd of companies eager to help Chinese investors buy homes overseas. The new listings platform, Meiaoju, launched earlier this month and has already secured RMB 50 million – US$8.13 million – in series A funding.
Sunac and Greentown Buy Land in Shanghai
A joint venture company owned by Tianjin’s Sunac and Greentown paid an 83 percent premium over the starting price to buy a 66,169 square metre plot of land in Shanghai’s Baoshan district. The developers paid RMB 2.4 billion for the tract, and based on the plot ratio of 1.8 proscribed for the site by the government, the accommodation value works out to RMB 20,150 per square metre of GFA.
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