Updated
Updated · Bloomberg · Jul 10
China Vanke Forecasts First-H Loss of Up to $2.2 Billion on Margin Squeeze
Updated
Updated · Bloomberg · Jul 10

China Vanke Forecasts First-H Loss of Up to $2.2 Billion on Margin Squeeze

1 articles · Updated · Bloomberg · Jul 10

Summary

  • 12 billion-15 billion yuan in preliminary net losses would leave China Vanke deeper in the red for the six months ended June, versus an 11.9 billion yuan loss a year earlier.
  • Low gross margins on property development projects and asset impairment charges drove the expected first-half shortfall, the developer said in a Shenzhen exchange filing.
  • The forecast puts Vanke's first-half loss at roughly $1.8 billion-$2.2 billion, underscoring continued strain at one of China's troubled property developers.

Insights

With 20 years of property gains erased, is Vanke's record loss proof that Beijing’s market rescue has already failed?
As a top developer reports billions in losses, what happens to the millions who bet their life savings on China's property dream?