Date
21 July 2017
China's nationwide property sales this year will be similar to the levels seen in 2014, according to Moody's. Photo: Bloomberg
China's nationwide property sales this year will be similar to the levels seen in 2014, according to Moody's. Photo: Bloomberg

China to continue support for property sector: Moody’s

China will continue to loosen policies in the housing sector to support property demand, Moody’s said on Friday.

Property sales nationwide this year will be similar to the levels seen in 2014 due to the various loosening policies, the ratings agency said in a statement.

Meanwhile, margin compression in property portfolios will slow as a supportive regulatory environment will boost sales, it said.

However, financial results of the 11 property developers under Moody’s coverage will remain weak for the first half of 2015 due to a slowdown that is typical in the first quarter as a result of the Chinese New Year, the agency said.

Companies are expected to achieve their contracted sales growth target of 5-10 percent for the full year, after a 17 percent pace in 2014. Despite some slowdown in the growth pace, the 11 firms are are expected to continue outperforming the broader Chinese property market.

Moody’s downgraded Sunac China Holdings (B1 stable) by one notch and changed the ratings outlook on Wuzhou International Holdings (B2 negative) and Jingrui Holdings (B2 negative) to negative from stable following their latest annual results announcements.

“We do not expect to take a significant number of negative rating actions in 2015, but they will continue to outnumber positive ones,” Moody’s said.

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