SHANGHAI, March 10 (Reuters) - China's biggest homebuilder, China State Construction Engineering Corp (CSCEC), posted big gains in its construction and real estate business in January and February, signalling continued strength in the property market.
The value of CSCEC's new construction contracts in the first two months of the year jumped 85.3 percent from a year earlier to 55.8 billion yuan ($8.2 billion), while real estate sales rose 71.5 percent to 6.5 billion yuan, the company said in a statement to the Shanghai Stock Exchange on Wednesday.
CSCEC forecast in January that its net profit for 2009 jumped more than 80 percent.
Its chairman, Sun Wenjie, said last week that the company, which raised more than 50 billion yuan in a Shanghai IPO last year, would continue to buy land for development despite government tightening on credit.
The government has raised banks' required reserve ratios, restricted bank lending and stepped up efforts to punish land hoarding in a bid to check a rapid rise in property prices and ward off potential asset bubble risks.
Shenzhen-based property developer Gemdale Corp also benefited from China's property boom last year. The company reported on Wednesday that its 2009 net profit more than doubled to 1.78 billion yuan, as sales rose 23.9 percent to 12 billion yuan.
($1=6.83 yuan)
(Reporting by Samuel Shen and Jason Subler; Editing by Ken Wills)
((Samuel.shen@thomsonreuters.com; +86 21 6104 1789; Reuters Messaging: samuel.shen.thomsonreuters.com@reuters.net)) Keywords: CHINA CSCEC/SALES (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The value of CSCEC's new construction contracts in the first two months of the year jumped 85.3 percent from a year earlier to 55.8 billion yuan ($8.2 billion), while real estate sales rose 71.5 percent to 6.5 billion yuan, the company said in a statement to the Shanghai Stock Exchange on Wednesday.
CSCEC forecast in January that its net profit for 2009 jumped more than 80 percent.
Its chairman, Sun Wenjie, said last week that the company, which raised more than 50 billion yuan in a Shanghai IPO last year, would continue to buy land for development despite government tightening on credit.
The government has raised banks' required reserve ratios, restricted bank lending and stepped up efforts to punish land hoarding in a bid to check a rapid rise in property prices and ward off potential asset bubble risks.
Shenzhen-based property developer Gemdale Corp also benefited from China's property boom last year. The company reported on Wednesday that its 2009 net profit more than doubled to 1.78 billion yuan, as sales rose 23.9 percent to 12 billion yuan.
($1=6.83 yuan)
(Reporting by Samuel Shen and Jason Subler; Editing by Ken Wills)
((Samuel.shen@thomsonreuters.com; +86 21 6104 1789; Reuters Messaging: samuel.shen.thomsonreuters.com@reuters.net)) Keywords: CHINA CSCEC/SALES (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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