Mainland property companies' performance and market outlooks

This report presents an analysis of the key financial performance indicators of Chinese property companies in 2010 and 2011 with the objective to provide them with suggestions on strategies, operations and financing, based upon prevailing market and regulatory conditions in China.

The analysis covers a sample of 168 property companies listed in Hong Kong, Shanghai or Shenzhen. We anticipated that the Chinese property sector will remain significantly influenced by regulatory regime and administrative measures, given the long term government's commitment to combat irrational increase in property prices. To stay competitive, it becomes imperative for property companies to embark on new market expansion or penetration in existing market, depending on their strategies, competitive advantages and resources. Other important measures include proactive sales strategy, diversification into other types of properties, tighter internal and cost control, as well as improving financing capabilities.