The stocks and bonds of Chinese property developers have been hit hard by the turbulence in capital markets triggered by the coronavirus outbreak as investors shun the sector amid concerns over profitability and sales, reported Caixin.
Builders listed on the Chinese mainland and in Hong Kong have fallen sharply over the past two weeks. The Shenzhen-listed shares of China Vanke Co., one of the biggest developers by sales, have dropped 15.1% since the close of business on March 11, while in Hong Kong they’ve slumped 16.4%. Hong Kong-listed China Evergrande Group has plunged 27.3% over the same period.
Vanke disclosed on Tuesday that sales sank about RMB 51 billion ($7.2 billion) in February and the first half of March compared with the same period last year and its chairman Yu Liang warned that “survival is a real issue now.”