China Vanke reports 25% increase in H1 profits

China Vanke (200002.SZ), the nation’s largest developer by market value, announced a 25% increase in first-half profits as the company slashed prices to revitalize sales, Bloomberg reported. According to a Shenzhen stock exchange filing yesterday, the company saw its net income increase to RMB3.73 billion (US$585 million). Sales rose 54% to RMB30.72 (US$4.8 billion). Prior to the earnings announcement, Vanke stock rose 0.7% to RMB8.8 (US$1.37), a 17% year-on-year increase. “Big companies such as Vanke tend to do better in downturns because they’re better at marketing,” said Jack Gong, a property analyst at Jefferies Group. According to board secretary Tan Huajie, Vanke will continue to watch closely for opportunities in the property market during the second half of the year, but will not relax its investment standard.