- Chinese real estate developer, China Vanke (000002.SZ), has announced that it will repurchase 10 billion shares at a price of less than RMB 13.7 per share, as reported by Sina.
- The company reported sales of RMB 109.9 billion for the first six months of the year.
Why It Matters:
- The Chinese government has implemented several policies to boost the housing market, and the sales of real estate developers improved significantly in the second quarter. According to the Beijing Times, Evergrande Real Estate (3333.HK) and Greenland Hong Kong Holdings (0337.HK) reported sales of RMB 89.3 billion and RMB 79.8 billion respectively, which ranks the companies second and third among real estate developers in terms of sales.
- China Vanke is adjusting its business model and placing more focus on profit instead of sales. Yicai.com reported that in an internal email from Vanke’s Beijing branch chairman Liu Xiao, it was revealed that the unit’s profit margin had increased to 50%.
- China Vanke has also been working with a mutual fund, and it has launched a real estate investment trust (REIT) and associated products.