Evergrande boss Xu Jiayin may have been trading profits for growth
Aggressive bets by China Evergrande helped the top five developer watch its profits slow by nearly a quarter during the first half of this year, while the Wall Street Journal discovers that Chinese developers have discovered America. Meanwhile, Chinese banks lean more toward mortgages as non-performing loans rise and more headlines, if you’ll just read on.
China Evergrande Profit Tumbles 23% Amidst Acquisition Spree
China Evergrande Group, the country’s second-largest homebuilder, posted a 23 percent drop in first-half core profit, weighed down by a slew of higher costs, including those for building materials to marketing.
Although revenue jumped 12.6 percent to 87.5 billion yuan as government incentives bolstered the housing market, core net profit, which does not include revaluation gains or losses, slid to 7.8 billion yuan ($1.2 billion). Read more>>
Chinese Developers Move Deeper into US Projects
For eight years, a pair of local developers gradually readied a 42-acre strip of waterfront land 10 miles south of downtown San Francisco for a major project, steering it through local land-use approvals.
Now, a group of major Chinese developers is poised to do the heavy lifting. The venture of Greenland Holding Group, Ping An Trust and other investors paid $171 million last month for the site that juts into San Francisco Bay. Read more>>
Chinese Banks Take on More Mortgages Despite Rise in Bad Loans
In China, property prices and bank lending seem to go together like hand and glove.
Take the latest batch of earnings from China’s big state lenders. They show a substantial shift in lending toward the property market and away from companies. China Construction Bank this week reported residential mortgage lending rose almost 30% in the first half of this year compared with the same period last year. Meanwhile corporate lending fell 2%. At Bank of China, mortgages rose by more than a quarter. Read more>>
Evergrande Claims Vanke Stake Paid For Through Property Sales
China Evergrande Group said its 14.6 billion yuan worth of stock purchases in larger rival China Vanke were fully funded by its own property sales as it deflected concerns over its surging debt levels.
The mainland’s second largest home builder came under scrutiny earlier this month when it increased its stake in China Vanke to 6.82 per cent, making it the third largest single shareholder in the country’s biggest home builder. Read more>>
CITIC Capital Goes Sonic to Attract Visitors to New Shanghai Mall
THE birds’ chirping in the bushes. The rustle of tree leaves in the breeze. The rhythm of the falling rain. The hourly chime of the Customs House Clock on the Bund. Shanghai dialect spoken in an authentic local accent. The renditions of the famous 1940s “golden voice” singer Zhou Xuan. Honestly, few people would see an immediate logical connection between the above sounds or expect to hear them at one place. But most people, if not all, would agree they should be all quite pleasing to the ears.
But the notion will probably change when Shanghai 189 Lane, a boutique shopping mall, lifts its veil in the fourth quarter of this year in Putuo District. Read more>>
Greenland Online Finance Unit Pulls in “Remarkable” $8M
Cash-rich developers in China are diversifying into other businesses — with some turning to healthcare, cinemas and even football clubs. Greenland Holdings is one of the latest to branch out into internet finance, which analysts say would do little to relieve the rising debt burden it faces.
Greenland Hong Kong, an overseas listed unit of state-owned Greenland Holdings, said Tuesday its internet financing business established in May last year, posted its first half-year revenue of 53 million yuan ($7.9 million) for the January-June period. 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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