[photopress:vanke.jpg,full,alignright]Vanke Co, China’s largest listed property developer which is based in Shenzhen, has said its 2006 profit is likely to rise between 50% and 65% due to a sales boom over the past year.
The company, in a filing to the Shenzhen Stock Exchange, reported sales of more than RMB20 billion (US$2.5 billion) after selling more than three million square meters of property last year.
Zhang Qi, a Haitong Securities analyst, said, ‘It is no surprise that Vanke could obtain such a jump in profit. It seems that the company might continue to perform well this year since the country’s real estate market remains hot.’
The country’s real estate market has remained bullish. According to the National Bureau of Statistics, housing prices in China rose 5.2% in November from a month earlier, led by Fuzhou in Fujian Province, Beijing and Shenzhen.
Vanke received approval last month to sell as much as RMB4.2 billion of new shares to finance apartment construction in cities including Beijing, Shanghai, and Wuhan.
Source: Shanghai Daily