New stocks or old stocks they were still dropping like rocks today as investors continued to punish China’s real estate shares following last week’s bond default by Chaori Solar.
One of the country’s most established players, China Overseas Land & Investment Ltd. (HKG:688) saw its stock drop the most in nine months after it reported disappointing results for the first two months of 2014, according to a report in Bloomberg.
Hong Kong-listed China Overseas is the country’s largest developer by market capitalisation, and its stock fell as much as 5.1 percent, before closing down 3.88 percent at HK$ 18.84 per share.
The Hang Seng Property Index was down 1.26 percent today.
China Overseas’ slide was triggered by disappointing profit results for January and February which showed that core profit was up only 20 percent compared to the same period last year, which was below analyst expectations.
Warburg-Pincus Backed Developer Also Falls
The bad news for developer stocks also spread to some of the newest listings with a real estate firm backed by Warburg-Pincus dropping off as much nearly 25 percent during the day’s trading.
Sunshine 100 China Holdings Ltd, a real estate developer which debuted on the Hong Kong exchange last week fell as low as HK$3.05 compared with its HK$4.00 per share IPO price. The stock abruptly bounced back in late trading to close at HK$3.74.