Shares of Shimao Group Holdings Ltd. plunged 5.81% on Friday, as the Chinese property developer's latest sales figures failed to impress investors amid broader concerns surrounding the real estate sector in China.
In a filing with the Hong Kong stock exchange, Shimao Group reported contracted sales of approximately 25.35 billion yuan (US$3.54 billion) for the first nine months of 2024, with September sales reaching 2.94 billion yuan (US$411 million). While these figures represent a sizable amount, they may not have met market expectations or shown significant growth compared to the previous year, contributing to the stock's decline.
The real estate sector in China has been grappling with various challenges, including tighter regulations, oversupply concerns, and a slowdown in economic growth. These factors have weighed heavily on investor sentiment towards property developers, as concerns mount over their ability to sustain profitability and manage debt levels.
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