China Vanke Co., Poly Real Estate Group Co. and Gemdale Corp. led shares of developers lower after the China Securities Journal reported that Shaanxi province imposed a cap on profit margins for property projects.
Chinese equities posted the biggest drop in more than two weeks in New York, led by SouFun Holdings Ltd., on concern falling home prices will exacerbate a sixth quarter of slowing growth in Asia’s largest economy.
Danny Deng and his bride-to-be dreamed of their lives together as they walked through the showroom for a Shanghai housing project almost three months ago. Pooling his own and his parents’ savings, a loan from his boss and a 1.1 million yuan ($172,000) mortgage, he bought an apartment and secured his fiancee’s hand.
China Vanke Co ., the country’s biggest developer by market value, said first-quarter profit rose 7 percent as it sold more homes in smaller cities that were shielded from the effects of government curbs.
Chinese Premier Wen Jiabao said downward pressure on the economy is still “relatively large” and the government will intensify fine-tuning of policies even as measures taken since April are helping stabilize a slowdown.