China

China Vanke Records 128% Increase in March Sales

Summary:

  • China Vanke (2202.HK) has recorded a 128% increase in March sales to RMB 33 billion, according to Securities Times.
  • The total area sold by China Vanke also increased 93% to 2.4 million square meters.

Why It Matters:

  • The huge increase in March sales was driven by manic purchasing behavior. Local media suggest that many of China Vanke’s entire apartment buildings were sold with short periods of time, which was unusual compared with past results.
  • As local governments have introduced several policies to curb the increase in house prices, China Vanke’s sales are expected to fall to a more regular growth rate in the near future.
  • The firm also announced 16 new project developments in tier-two cities such as Nanjing and Ningbo. In some of these projects, China Vanke has partnered with other companies in order to reduce risk.