The mainland property market is seeing clearer signs of a rebound as data including developer financing and land transactions showed a month-on-month rise in June, China Securities Journal reported.
The sector is also expected to stabilize with the combined effects of measures to control the Covid pandemic and efforts to lift the real estate market.
The promising signs came even as Evergrande Property Services (6666) was reported to be requiring employees to sell the developer's first electric vehicle, the Hengchi 5.
China Evergrande New Energy Vehicle (0708) started taking pre-orders for the Hengchi 5 this month, with the starting price of the vehicle at 179,000 yuan (HK$209,210) after the state subsidy. Deliveries are expected to start as soon as October and reach 10,000 units by the end of March, it had said earlier.
Meanwhile, China Evergrande (3333) suffered its first rejection from local creditors to extend a bond payment deadline.
Holders of a puttable yuan-denominated bond from the firm's main onshore unit, Hengda Real Estate Group, rejected a plan to further extend payment past a July 8 deadline by six months, according to a Shenzhen stock exchange filing yesterday.
The company had held a meeting last week to seek creditor approval, but more than 90 percent of the voting holders rejected the proposed extension.
Hengda said it was still actively seeking to talk with holders of the yuan bond. The creditors' rejection of a proposed extension to the bond payment period will not affect Hengda's operations and risk disposal, the company said.
The firm added that its operations have been improving recently and it will step up efforts in homebuilding and delivery to support the bond repayment.
This came as Agile (3383) said it has redeemed a 1.5 billion yuan bond due in July as scheduled.
Elsewhere, the first-half contracted sales of Longfor (0960) slumped by 60 percent to 56.6 billion yuan.
And China Merchants Land (0978) posted a 28 percent decline in contracted sales to 20.7 billion yuan in the first six months of the year.
In other action, shares of Chinese developers including Evergrande and Sunac China (1918) were removed from the Stock Connect scheme that links Hong Kong and the mainland.
Financing and land transactions rose in June. SING TAO
