With half-year results approaching, investors are focused on whether developers’ earnings can stabilise
Published Tue, Jun 16, 2026 · 12:28 PM
CHINESE property stocks have slid back to levels seen before a raft of stimulus measures from the authorities in September 2024 drove a market turnaround, underscoring lingering pessimism over the sector.
A Bloomberg Intelligence gauge of Chinese developer shares fell as much as 2.1 per cent on Tuesday (Jun 16), extending losses after data showed a faster decline in home prices. Sunac China Holdings dropped 6 per cent, while Shimao Group Holdings lost 4.4 per cent.
The slump shows how investor appetite for old-economy sectors has waned as capital shifts towards technology and semiconductor stocks tied to the artificial intelligence buildout.
The policy blitz in 2024, when authorities pulled out all stops to revive the economy, ignited a monumental rally that’s kept most major benchmarks still trading above their 2024 highs.
Figures from the National Bureau of Statistics on Tuesday showed new-home prices in 70 cities, excluding state-subsidised housing, dropped 0.2 per cent from April when they slid 0.19 per cent.
While analysts at firms including Citigroup and Bank of America have begun to assert that the sector is finally stabilising, others have remained doubtful.
The property gauge has fallen 13 per cent this year while the Star 50 Index, which has chipmakers as its members, gained 30 per cent.
“We have seen notable improvement in both month-to-month and year-to-year home price trends in higher-tier cities in May, but prices in lower-tier cities remain under pressure,” said Jeff Zhang, an analyst at Morningstar.
Zhang added that the divergence between higher- and lower-tier cities will persist, with nationwide new home prices unlikely to bottom out before 2027.
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With half-year results approaching, investors are focused on whether developers’ earnings can stabilise.
China Vanke reported a net loss of around six billion yuan (S$1.1 billion) in the first quarter, highlighting deepening stress among the sector’s major players. Other developers, including Gemdale, also saw steep losses. BLOOMBERG
