BUSINESS Major listed real estate companies' profitability drops

BUSINESS

Major listed real estate companies' profitability drops

chinadaily.com.cn

19:30, May 24, 2021

A worker prepares to weld a steel structure at a construction site in Beijing. [Photo/Agencies]

The profitability of Chinese major listed real estate companies dropped last year due to rising operational costs, a report by the China Index Academy said.

The average growth of listed property companies' net profits is slower than that of operating income, according to the report. Real estate companies listed in Shanghai and Shenzhen saw their average operating income stand at 31.2 billion yuan ($4.8 billion) last year, up 13.1 percent year-on-year. And their average net profit dropped 3 percent to 3.34 billion yuan. While those listed on the Hong Kong bourse saw their average operating income increasing 14.8 percent year-on-year to 50.7 billion yuan, with their average net profits increasing by 3.5 percent to 6.3 billion yuan.

The report also points out that under the effect of guiding policies, the debt level of the listed real estate companies has declined. And China continues to be strict in financial policies over real estate, sticking to the principle of "housing is for living in, not for speculation" which was first proposed in 2016.

Another report released by the China Index Academy showed the real estate service sector is expanding in 2021. It estimated that by the end of this year, the number of listed companies in such industries may reach 70, with an average operational income of 3.06 billion yuan.


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