NBS chief Sheng Laiyun is pointing out an end to China’s housing price inflation
The latest mainland economic data has been released and the figures seem to show an end to China’s property recovery and raise questions about how some areas of the country will cope with lingering oversupply. Also in the news, Evergrande continues its buying spree by acquiring a 15% stake in a rival developer, and much more – if you’ll just keep reading.
China’s Stats Man Declares End to Housing Rebound
China’s chief statistician has called an end to roaring house price inflation. The sector’s “high-growth period is over,” said Sheng Laiyun, head of the National Bureau of Statistics.
Rampant home prices have been a hallmark of China’s economy, with the latest rally, which began in mid-2014, fuelled by easy credit. Prices were driven up by as much as 60 per cent in top-tier cities such as Shenzhen and Shanghai during the past 12 months. Read more>>
Mainland Property Oversupply Just Won’t Die
Growth in China’s property investment slowed over January to July, even as the government scrambled to balance an increasingly stratified sector, clouding the outlook for China’s economic expansion in the second half of the year.
Property investment in January-July rose 5.3 percent from a year earlier, data from the National Bureau of Statistics (NBS) showed on Friday, slowing from an increase of 6.1 percent in January-June, while property sales by floor area grew 26.4 percent, down from 27.9 percent. Read more>>
Evergrande Buys Up 15% of Rival Langfang
Billionaire Hui Ka Yan’s China Evergrande Group, which last week made a surprise entry into an ownership tussle for the nation’s largest residential developer, signaled its ambition to obtain control in another Chinese firm.
Evergrande, which boosted its stake in Shanghai-traded Langfang Development Co. to 15 percent in the past four months, plans to further increase its holdings and doesn’t exclude the possibility of obtaining actual control of the firm, Langfang said in a filing Wednesday, citing Evergrande response to a Shanghai exchange inquiry asking for more disclosure on the purchases. Read more>>
Fund Managers Dump Vanke Shares as Ownership Siege Continues
As one of the world’s biggest investors in developing countries, Aberdeen Asset Management Plc is no stranger to market drama. But even this hardened money manager can’t stomach the frenetic battle for control at China’s biggest developer.
The $403 billion investment firm sold all its Shenzhen-listed shares of China Vanke Co. after a six-month trading halt was lifted on July 4, said Frank Tian, who helps manage Aberdeen funds from the firm’s Hong Kong office. He cited uncertainty over the developer’s future amid a protracted ownership struggle involving at least three strategic shareholders. Read more>>
Thailand’s Central Group Has Big Plans in Vietnam
Central Group, the country’s biggest retail conglomerate, plans to expand its retail, hospitality and property development businesses in Vietnam. It will develop its own hotels and shopping malls in the neighbouring country.
Central’s current retail operations in Vietnam include the Nguyen Kim appliance chain, Lan Chi Mart supermarkets, Big C hypermarkets and the Robins department store. Jariya Chirathivat, a representative of Central Group, said the group has potential to develop hotels and shopping complexes in Vietnam through joint ventures with local partners. Read more>>
DoubleDragon Invests $18M into Philippines’ Hotel of Asia
DoubleDragon Properties Corp has forayed into the hospitality business after signing an agreement to acquire 70 per cent stake in Hotel of Asia Inc (HOA) for a consideration of $17.8 million (P832.17 million). HOA is engaged in the ownership, operation and development of hotel projects. It booked P113.4 million in net income last year.
“The stake in HOA will now allow DoubleDragon to benefit from the booming tourism prospects for the Philippines in the years to come as well as fully optimise the use and value of its string of prime properties in various strategic areas of the country,” DoubleDragon said, in its statement to the Philippine Stock Exchange. Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter for headlines as they happen.
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