More than a dozen major real estate firms in China have seen their stocks nosedive, according to a report.
There are more than 30 real estate companies worth over $30 billion in China. 17 of them have had their stocks drop more than 50%, compared to the peak in 2018.
Throughout this year, the Shenwan Real Estate Index has its share values dropped by nearly 15%, ranking fourth on the Shenwan First Class Industrial Decline List, according to statistics from Securities Times, as Aboluowang reported.
Individual stocks such as China Fortune Land Development, Blu-ray Development, and Meihao Land were all down more than 50% at the same time. The Hang Seng Real Estate Construction met an 18% drop, whereas shares of China Evergrande, Suncity Group, and Fantasia Holdings suffered dramatic decreases of more than 50%.
In contrast, at the beginning of 2018, China Evergrande‘s stock was above HK$26, or about $3.33. At present, it was only less than HK$2, or 20 cents in U.S. dollars.
Since the peaks in 2018, around 100 billion-level real estate companies, including China Aoyuan, China Xiangsheng Holdings, Kaisa Group, Rongxin China, R&F Properties, and Shimao Group, all have their stock values nosedive more than 70%.
Sino-Ocean Group and Zhongnan Construction respectively experienced a fall of 62.18% and 60.07%, marking them the 11th and 12th names on the list of companies that met the most significant shares price downfall.
In general, China’s real estate stock’s steep decline reflects a significant problem in the mainland’s economy. The recent sales of real estate companies were not optimistic.
The real estate industry has been crumbling hard since Chinese leader Xi Jinping is looking to divorce the country’s economic strength from the sector.