China’s property stocks plunged the most since June 2008 after the government intensified a three- year campaign to cool the real estate market, ordering higher down payments and stricter enforcement of sales taxes.
Sun Hung Kai Properties Ltd., the world’s biggest developer by value, lowered its home sales target after the Hong Kong government’s extra property measures to curb prices that have doubled in four years.
Sun Hung Kai Properties Ltd., the world’s biggest developer by value, posted a less-than-estimated decline in underlying profit as it put up fewer apartments for sale after the company’s chairmen were charged with bribery.
Sino Land Co., the developer that derives almost all its earnings from Hong Kong, said fiscal first-half underlying profit rose 81 percent after booking more apartment sales as the city’s home prices rose to a record.
China’s new home prices rose in most cities the government tracks for a third month, adding pressure on leaders to intensify policy-tightening efforts to prevent asset bubbles and inflation as the economy rebounds.
Hong Kong developers, seeking funds to tap an expanding government land supply, are this month preparing to sell the most homes in six years as expectations for prolonged low interest rates fuel demand.