China Resources Land posts 11.7% profit increase, sees stability ahead for property sector thanks to policy support
- Revenue jumped 21 per cent in 2023 while net gearing and borrowing costs fell
- China’s troubled property market is on track for a gradual return to stability despite the many challenges it still faces, company says
China’s troubled property market is on track for a gradual return to stability despite the many challenges it still faces, China Resources Land said as it posted another profitable year in 2023, extending its streak through all crises since at least 1997.
Earnings at the nation’s fourth-largest developer rose 11.7 per cent to 31.4 billion yuan (US$4.4 billion) compared with 2022, according to a filing with the Hong Kong stock exchange on Tuesday.
“In 2024, although the property market will continue to face many challenges, with the implementation of supportive government policies to mitigate risks and city-specific measures, the confidence of enterprises and residents will gradually recover,” chairman Li Xin said in the results announcement. “The real estate industry will also gradually return to stable development and transition towards new development models.”
Li’s remark echoed comments by the People’s Bank of China that some “positive signals” have emerged from the country’s property market, which has a solid foundation for healthy and stable development in the long term.