China Property Market Faces Turmoil as Developers Removed from Stock Connect Scheme

Tuesday, 10 September 2024, 06:38

China's property market turmoil escalates as several distressed property stocks slide following their removal from the Stock Connect scheme. The immediate impact saw Shimao Group, CIFI Holdings, and Sino-Ocean Group plunge 14 to 23 percent, compounding ongoing market struggles. This decision has erased approximately HK$1.76 billion in market value, shaking investor confidence further.
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China Property Market Faces Turmoil as Developers Removed from Stock Connect Scheme

China Property Market Crisis Intensifies

In a significant blow to the China property market, officials have removed several distressed developers from the Stock Connect scheme, triggering a fresh wave of sell-offs. Shimao Group Holdings, CIFI Holdings, and Sino-Ocean Group saw their stock values plummet between 14 and 23 percent. The Hang Seng Mainland Properties Index, which tracks various mainland developers, also fell by 3.5 percent to a record low, highlighting the severity of the crisis.

Market Impact and Developer Struggles

This latest move comes amid ongoing struggles for the sector, with contracted sales from the top 100 Chinese developers plunging 27 percent year on year. Investors are increasingly cautious as many notable developers grapple with significant losses. Shimao’s losses swelled to 22.7 billion yuan, exacerbated by tightening liquidity and lawsuits from creditors.

  • Shimao Group Events: 23% drop to HK$0.46
  • CIFI Holdings: 15% drop to HK$0.2
  • Sino-Ocean Group: Significant declines reported

The situation reflects a broader trend of declining confidence in the China property market, with the impact of previous rescue measures fading.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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