Chinese property stocks declined on Thursday after Country Garden, once the country’s largest developer by sales, reported record losses and China Vanke cancelled a share placement.
The CSI 300 Real Estate index, which tracks property stocks listed on mainland exchanges, declined 4.1 per cent in morning trading. Hong Kong’s Hang Seng Mainland Properties index declined 1.5 per cent, erasing early gains.
China’s property sector is dealing with a renewed liquidity crisis. Country Garden on Wednesday reported a $7bn dollar first-half loss, its worst ever, while China Vanke, another major developer, cancelled a share placement worth up to Rmb15bn ($2bn) and released earnings showing a 19 per cent slide in profits.