China’s CCCC has been pulled into Malaysian PM Najib’s 1MDB scandal
Among the biggest stories as we kick off August is the strong performance of China’s residential market, where sales rose again in July. That upswing helped some mainland developers to announce better than expected sales, while their Hong Kong counterparts continue to struggle with a downturn. Also in the news, one of China’s largest construction firms finds itself embroiled in the 1MDB scandal, and there’s much more to learn – if you just keep reading.
China Home Prices Rise for 15th Consecutive Month
Surging new home prices in China showed no signs of waning in July, but looming policy tightening and unrestrained sales growth suggests a possible cooling-off in the months ahead.
Average new home prices in 100 cities rose 1.63 percent in July to reach 12,009 yuan per square meter, an acceleration from the 1.32 per cent expansion in June, China Index Academy, a research institute owned by SouFun Holdings, said on Monday. Read more>>
Chinese Contractor Denies Role in 1MDB Cover Up
China Communications Construction Company, which owns Australian engineering group John Holland, has refuted claims of any involvement in a supposed plot to cover up a corruption scandal at 1Malaysia Development Bhd (1MDB) involving a railway contract.
Sarawak Report had last week claimed that Malaysian authorities had planned to to double the cost of the East Coast Rail Project from RM30 billion ringgit to RM60 billion ringgit. Read more>>
Future Land Says Sales Could Outperform by 30%
Future Land Holdings, which bought one of Shanghai’s priciest land parcels last month, said it is expecting to sell 30 per cent more in housing contracts this year as China’s economy shows signs of regaining its growth momentum, while a new Disney resort burnishes the city’s attractiveness for investors.
Housing contract sales, or sales of partially constructed homes, may rise to 52 billion yuan in 2016, 30 per cent higher than an earlier forecast, the Shanghai-listed company said. Read more>>
Hysan Net Income Falls 60% After Revaluation
Hysan Development, Hong Kong’s seventh largest developer by market capitalisation, reported a profit decline in the first six months of 2016, after a revaluation of its investment properties.
Net income fell 60.7 per cent to HK$899 million, or HK$0.86 per share, the company said in an exchange statement. Excluding valuation loss from the company’s investment properties, Hysan’s underlying profit rose 1.3 per cent to HK$1.18 billion, beating a Reuters analyst poll of HK$1.15 billion. Read more>>
Li Ka-Shing’s Hui Xian REIT Cuts Payout Ratio
Hui Xian, the trail-blazing yuan-denominated real estate investment trust in Hong Kong launched by tycoon Li Ka-shing, has cut its payout ratio by 1 percentage point in a bid to shore up capital for future expansion.
It said the distributions to unitholders amounted to 781 million yuan, a payout ratio of 97 per cent for the six months to June, down from 98 per cent during the same period in 2015 and 100 per cent in 2014. Read more>>
Hong Kong Malls Turn to Pokemon to Replace Mainlanders
As Hong Kong tourist numbers continue to suffer, particularly from the mainland, shopping mall owners are shifting their attention to younger consumers to maintain rental levels.
The most popular recent promotions have focused on Olympic Games-related activities and Pokemon-themed events, but more tenants offering family products aimed at the affluent have also been encouraged to move into sites. 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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