China home prices in biggest fall since 2015

Agencies and staff reporter

China's property prices fell 0.3 percent month-on-month in November, the biggest decline since February 2015, according to Reuters calculations based on data released by the National Bureau of Statistics yesterday.

In some cities the "downward pressure on the housing market has increased," Fu Linghui, a spokesman for the National Bureau of Statistics, told reporters. "Constraints from sporadic virus outbreaks on consumption, especially in-person consumption, still persist."

His comments came as the People's Bank of China said it will continue to push for the healthy development of the property market and seek to prevent financial risks, reiterating a stance from last week's Central Economic Work Conference.

Meanwhile, Chinese authorities are scrutinizing the assets of China Evergrande (3333) and its wealthy chairman Hui Ka-yan but no fire sale is expected for now, sources said.

The audit, previously unreported, included assessing the value of the assets, and determining if there are any hidden ones, which will allow the authorities to decide whether a bailout involving state-owned entities is necessary, they said.

Shares of Evergrande fell to a record low of HK$1.53 before closing 3.12 lower yesterday after reports that eight idle lands of the shares of the embattled developer in Haikou city were reclaimed by the government at nil consideration.

The city's regulator said the company has not commenced the construction two years after the agreed date and the lands were thus retrieved by the local government in accordance with the agreement.

And in Guangdong, the government has ordered Evergrande to halt its asset disposal and has sent a working team to Evergrande's headquarters in Guangzhou, the capital city of the province, to assess its financial conditions, mainland media reported.

Another Guangdong-based developer Guangzhou R&F Properties (2777) is asking holders of a US$725 million (HK$5.66 billion) US dollar note maturing January 13 to extend the due date by six months and is offering to buy back some of the debt at a discount.

Amid the growing consternation about China's indebted developers, UBS estimates that Shanghai-based Shimao Group (0813) will have US$4.4 billion worth of domestic and foreign bonds and foreign syndicated loans maturing next year.