China Property Woes Deepen With Vanke Slump, Country Garden Halt

-- One of China’s biggest property firms delayed its earnings report while another posted a record profit decline as the nation’s real estate crisis shows no signs of easing.Dubai Is Losing Its Allure for Wealthy Russians

Country Garden said it expects to delay publishing its 2023 results beyond the March 31 deadline imposed by regulators. The delay will likely result in a suspension of trading on April 2 when the Hong Kong market reopens after Easter, the firm said in a filing.The postponement signals the developer’s troubles are entering a new chapter after a Hong Kong court received a creditor’s petition to wind up the company following the default on dollar debt.

Vanke meanwhile said net income attributable to shareholders shrank to 12.2 billion yuan for 2023. The drop dwarfs a 14% slide expected by analysts surveyed by Bloomberg. Vanke has enough financing support from banks, the company’s President Zhu Jiusheng said in an online briefing on Friday, adding that it has 26 banking partners.

Bank of Communications Co. reported that its property bad loan ratio jumped to 4.99% at the end of last year from 2.8% a year earlier. Bigger rival Industrial & Commercial Bank of China Ltd. saw its bad loans from residential mortgages rise 9.6%. Agricultural Bank of China Ltd. reported a 4.7% increase in soured residential mortgage loans last year.A persistent home sales drought has endangered an increasingly larger group of developers.

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