Quote | Super Quote
Super Quote   |   Detail Quote   |   Interactive Chart   |   Transaction   |   Related News   |   Related Securities   |   Company Information   |   Dividend Records   |   Short Sell
02202 CHINA VANKE
RTNominal up5.420 +0.070 (+1.308%)
Others

20/11/2017 14:41

China's top developers to grab more share as market cools

[ET Net News Agency, 20 November 2017] Chinese authorities are beginning to gain
control over a property market upcycle that started more than two years ago, S&P Global
Ratings said today in a report titled, "China Property Watch: Top Developers Could Grab A
Bigger Share Of A Cooling Market."
Sales growth has waned in recent months, and dipped into negative territory in October, a
traditional booster month for the sector. This comes after a 10% jump in residential
property sales by value in the first 10 months of the year, and record high sales for
leading developers, despite measures by Chinese policymakers to cool the residential
property market.
"We believe that China's property market is finally losing some steam," said S&P Global
Ratings credit analyst Matthew Chow. "We forecast China's overall national property sales
will decline by up to 5% in 2018, primarily due to lower volumes."
The credit rating agency thinks that selling prices will remain resilient, especially
for higher-tier cities, although price levels could be at risk in some overheated
lower-tier cities.
Tightening measures thus far have not deflated prices, but rather lowered volumes. This
has been the case in the higher-tier cities in 2017, where price controls deterred
developers from launching more projects.
"We could see increased divergence within the sector, with stronger developers
consolidating gains, in some cases by taking over smaller and more vulnerable
competitors," said Chow.
S&P rated Chinese developers will likely outperform the broad market on sales. It also
expects that leading developers will have opportunities to expand by taking over small
developers who are often at a disadvantage on funding, and more vulnerable to corrections.
Leading developers have strengthened their liquidity positions amid stronger
profitability in the upturn. For this reason, the agency expects that the average credit
profile for our rated Chinese developers will remain stable, even as market conditions
soften in 2018.
However, developers more dependent on trust financing will be more vulnerable to
tightening credit conditions. The key risk for 2018 is significantly rising refinancing
needs, it noted.
Refinancing needs will start to crest next year and are unlikely to subside in 2019 and
2020. S&P expects outstanding-bond supply to increase, with approvals for crucial
refinancing likely coming through, but that funding costs will rise from their lows. (KL)

Remark: Real time quote last updated: 28/03/2024 18:00
  Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service
A Member of HKET Holdings
Customer Service Hotline:(852) 2880 7004     Customer Service Email:cs@etnet.com.hk
Copyright 2024 ET Net Limited. http://www.etnet.com.hk ET Net Limited, HKEx Information Services Limited, its Holding Companies and/or any Subsidiaries of such holding companies, and Third Party Information Providers endeavour to ensure the availability, completeness, timeliness, accuracy and reliability of the information provided but do not guarantee its availability, completeness, timeliness, accuracy or reliability and accept no liability (whether in tort or contract or otherwise) any loss or damage arising directly or indirectly from any inaccuracies, interruption, incompleteness, delay, omissions, or any decision made or action taken by you or any third party in reliance upon the information provided. The quotes, charts, commentaries and buy/sell ratings on this website should be used as references only with your own discretion. ET Net Limited is not soliciting any subscriber or site visitor to execute any trade. Any trades executed following the commentaries and buy/sell ratings on this website are taken at your own risk for your own account.