Hong Kong, October 29, 2015 -- Moody's Investors Service says positive sales momentum for China's
(Aa3 stable) property sector will continue into 4Q 2015, as a result
of the supportive monetary and regulatory polices implemented since 2H
2014.
"These favorable policies — including the increased availability
of mortgages, as well as lower down payments and funding costs to
buyers financing their second homes with bank mortgages — will support
overall sales over the next 12 months and help maintain healthy year-on-year
growth into 4Q 2015," says Stephanie Lau, a Moody's
Assistant Vice President and Analyst.
Lau was speaking on the release of Moody's latest "China Property Focus".
According to China's National Bureau of Statistics, year-to-date
national contracted sales continued to grow in September 2015, with
cumulative contracted sales registering year-on-year growth
of 18.2% (RMB4.79 trillion) in the first nine months
of 2015, largely stable from 18.7% (RMB4.07
trillion) in the first eight months of 2015.
Sales in September grew by 15.7% year-on-year,
the sixth consecutive month with a positive movement. The growth
in September was mainly driven by growth in sales volumes, which
was also the case in August.
The report also notes a continued rebound in residential home prices in
September 2015 in China's 70 major cities.
In particular, for the first time since April 2014, more than
half of the 70 cities, that is 39 cities, reported month-on-month
increases in September, up from 35 in August.
In addition, for the second time in 12 months, all four first-tier
cities recorded positive year-on-year price growth.
Moody's expects that the pressure on home prices will continue to
ease through 2015.
Meanwhile, the liquidity index for investment-grade and high-yield
Chinese property developers — which measures the number of rated
developers that exhibit inadequate liquidity — remained at 20.4%
in September 2015, unchanged from August 2015.
The main topics covered in Moody's latest China Property Focus are:
• Positive Sales Momentum to Continue into 4Q 2015
• Rebound in Residential Home Prices to Continue
• Lower Down Payment Requirement Is Credit Positive for Developers
• Liquidity Index Remained Stable in September 2015
Subscribers can access the full report at http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_185404
Moody's offers complimentary access to its new topic page,
China -- Reform and Rebalancing, a centralized source for Moody's
research related to key credit issues in China as the country's
rebalancing story unfolds. This report is part of Moody's ongoing
coverage on this theme. Register today at www.moodys.com/chinarebalancing
for access to all research on this page.
Recent Moody's publications relating to China Reform and Rebalancing include:
Asset Managers Get a Boost from China Access
Chinese Auto ABS: Delinquencies Stable in Q2 2015, but Likely
to Increase Slightly
Slower Growth and Rising Credit Risk Are Symptoms of Rebalancing (Simplified
Chinese translation)
China's Life Insurance Reform Is Credit Negative for Insurers
Property -- China : Reduced Down-Payment Requirement
Is Credit Positive for Developers
Automotive - China: Chinese Automakers Will Benefit from
Vehicle-Purchase Tax Cut
China Property Focus - September 2015
Inside Renminbi Bonds - September 2015
Non-Property Companies - China: Revenue Growth Will
Remain Constrained Through 2016
Chinese Corporates: New Policy on Offshore Debt Issuance Facilitates
Offshore Fundraising for Chinese Companies
These reports are available at http://www.moodys.com/chinarebalancing
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This publication does not announce a credit rating action. For
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Stephanie Lau
Asst Vice President - Analyst
Corporate Finance Group
Moody's Investors Service Hong Kong Ltd.
24/F One Pacific Place
88 Queensway
Hong Kong
China (Hong Kong S.A.R.)
JOURNALISTS: (852) 3758 -1350
SUBSCRIBERS: (852) 3551-3077
Gary Lau
MD - Corporate Finance
Corporate Finance Group
JOURNALISTS: (852) 3758 -1350
SUBSCRIBERS: (852) 3551-3077
Releasing Office:
Moody's Investors Service Hong Kong Ltd.
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Moody's: Chinese property sector to see positive sales momentum into 4Q