(Bloomberg) -- China Vanke Co.’s sales slump extended in July, adding to liquidity pressure at the developer that’s become the latest focal point of the nation’s property crisis.
Contracted sales for the month slumped 13% from a year earlier to 19.2 billion yuan ($2.7 billion), following a 29.3% slide in June, corporate filings show. The total was 24% lower on month.
The protracted sales slump is escalating investor concern over its liquidity. The company, once considered a sound player due to its state-backing has been raising funds and exploring assets sales to stave off a cash crunch.
“Vanke’s solvency in 2025 and 2026 remains at risk,” Bloomberg Intelligence analyst Kristy Hung wrote in a Thursday note. “Buyers’ weariness of private developers’ presales and preference for secondhand homes will likely hinder a recovery in its sales and liquidity.”
Vanke’s month-on-month decline in home sales is still smaller than the 36% slide at the 100 biggest real estate companies tracked by China Real Estate Information Corp.
China Home Sales Slump Drags On Despite Latest Rescue Effort
China’s new-home prices in June plunged near the fastest pace in almost a decade, giving people less reason to invest in property. The real estate sector remains a drag on the economy, which is on track to undershoot the government’s official 5% growth target for this year, Bloomberg Economics estimated earlier.
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