Property developer China Vanke (200002.SZ) announced that profits climbed 5.9% in the first half of 2011 on the back of stronger sales in smaller cities that Beijing has exempted from property investment curbs, Bloomberg reported. Net income increased to US$460 million in the six months ending June, and revenues rose 19% to US$3.11 billion. “The government’s property policies certainly have had an impact on the overall industry, but big listed-companies such as Vanke are holding up well because the government’s measures are aimed at speculative purchases,” said Danny Bao, a Hong Kong- based analyst for Daiwa Securities Capital Market. Vanke said it sold more mass-market homes in smaller cities, which boosted profits as housing prices rose in most Chinese cities during the first half of the year. Beijing implemented strong policy curbs on property speculation in China’s major cities but did not apply the policy to lower-tier cities. However, the State Council said last month that it will extend the curbs to smaller cities in the future.