China’s real estate sector continues to report bad news amid a Chinese economy that is not showing any signs of improvement.

Da Ji Yuan reported that among Chinese real estate companies listed, more than 70% saw a decrease in net profit compared to the same period last year.

Specifically, out of 169 listed real estate companies, 129 companies saw a decrease in net profit. There are 55 losing companies, with a total loss of more than 59.5 billion yuan (nearly $9 billion).

R&F Real Estate was the biggest loser, with a loss of 6.92 billion yuan ($1 billion). Jianye Real Estate followed closely, with 5.6 billion yuan. 15 real estate companies lost more than 1 billion yuan each. Meanwhile, 8 others lost 2 billion yuan.

Head of research at the Enterprise Division of the China Index Research Institute, Liu Shui, told Securities Daily that the gross profit margin of listed companies in the real estate industry, in general, has dropped to as low as 20%.

Liu said that factors affecting the real estate companies’ net profit in the first half of 2022 include the macroeconomic downturn, the resurgence of the COVID-19 pandemic, and people’s loss of faith and profitability in the real estate market.

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