Developers restructure for changing market

According to the company's financial statement, Financial Street Holdings' sales surged 50 percent to 13.1 billion yuan in the first three quarters of 2012, with commercial business accounting for 41 percent.

"For residential projects, there is no change in our pricing strategy yet," said the manager, who declined to be named.

China Fortune Land Investment Development Co Ltd, a Shanghai-listed property developer, has focused on the construction of industrial parks, as the country's rapid pace of urbanization must be supported by an industry upgrade, especially in small cities and towns.

The company's net profits reached 1.783 billion yuan in 2012, up 31.34 percent year-on-year. And its operating profit grew 43.95 percent to 2.52 billion yuan, according to its annual report.

Qin Hong, director of the policy research center affiliated to the Ministry of Housing and Urban-Rural Development, said real estate companies should restructure their business to adapt to market changes.

"They should diversify their business lines and their business presence geographically," Qin told a forum hosted by China Index Academy.

Property developers' shares rallied on Monday, as the real estate regulations announced by a number of local governments were less stringent than expected.

Though the Shanghai Composite Index dipped 0.1 percent, property developers rose by an average of 1.46 percent.

The asset-liability ratio of China's major 100 property developers fell in 2012, the first drop in the past five years, a study showed.

The average effective asset-liability ratio for the top 100 Chinese property developers was 47.3 percent, down 1.9 percentage points year-on-year, according to research by China Real Estate Top 10 Research Institute, which includes experts from the Development Research Center of the State Council, Tsinghua University and China Index Academy.

huyuanyuan@chinadaily.com.cn