More property developers predict rising profits in H1

BEIJING - More property developers have forecast profit hikes for the first half of the year, despite a cash crunch that sent interbank borrowing costs to a record high in June.

As of Friday, 35 property developers had issued performance reports for the first half, with 21 companies showing climbing year-on-year profits, according to data from the Shanghai and Shenzhen stock exchanges.

China Vanke, the country's largest developer by market value, on Thursday announced that it realized 83.67 billion yuan ($13.58 billion) in sales in the first half, up 33.79 percent year on year.

Poly Real Estate Group Co Ltd, the country's second-largest property developer by market value, said Thursday that its net profits rose 35.37 percent in the first half, thanks to the substantial completion of real estate projects.

China Merchants Property Development Co Ltd, another property heavyweight, on Wednesday predicted 2.5 to 2.6 billion yuan in net profits for the first half, up 105 to 113 percent year on year, thanks to closures of more projects.

Many small and medium-sized property developers, however, suffered shrinking profits or even losses due to limited settlements.

Although less than 30 percent of all of China's listed property developers have disclosed their performances thus far, it is expected that the property sector will generally see rising profits for the first half.

Domestic investment bank China International Capital Corporation Limited predicted a 21-percent average rise in profits for key property developers.

Shares of China Vanke tumbled 3.53 percent to 10.40 yuan per share on Friday, while Poly Real Estate shrank 3.62 percent to 10.91 yuan per share.