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New home prices in China fall 5.3% in August 2024

New home prices were down 5.3% from a year earlier.

Published

2 months ago

September 16, 2024

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Official data revealed that China’s new home prices had fallen at their fastest rate in over nine years in August, as supportive measures failed to induce a significant recovery in the property sector. The data showed that new home prices were down 5.3% compared to the previous year, marking the sharpest decline since May 2015, compared to a 4.9% drop in July, based on calculations by Reuters from National Bureau of Statistics (NBS) data. Monthly figures indicated that new home prices had fallen for the fourteenth consecutive month, decreasing by 0.7%, which was the same drop recorded in July.

The property market in China continues to struggle with deeply indebted developers, incomplete apartments, and declining buyer confidence, which is putting a strain on the financial system and threatening the 5% economic growth target for the year. A Reuters poll had forecast that home prices in China would decline by 8.5% in 2024 and by 3.9% in 2025 as the sector struggles to stabilise.

Zhang Dawei, chief analyst at property agency Centaline, mentioned that the property market is still gradually bottoming out, with home buyers’ demand, income, and confidence expected to take some time to recover. He noted that the market was anticipating a stronger policy response. According to the official data released on Saturday, property investment had fallen by 10.2% and home sales had dropped by 18.0% year-on-year in the first eight months of the year.

Chinese policymakers have stepped up efforts to support the property sector, including reducing mortgage rates and lowering home buying costs. These measures have partially revitalised demand in major cities, while smaller cities, which have fewer home purchase restrictions and high levels of unsold inventory, are particularly vulnerable. This situation underscores the difficulties faced by authorities in balancing demand and supply across different regions.

In a research note on Friday, Nomura indicated that with the growth slowdown worsening under new headwinds in the second half of the year, Beijing might eventually need to step in as the “builder of last resort” by directly providing funding to delayed residential projects that have already been pre-sold. According to Bloomberg News, China may cut interest rates on over $5 trillion in outstanding mortgages as early as this month.

To support these mortgage rate cuts, economists at ANZ suggested that a reduction in the five-year Loan Prime Rate was likely in September, along with a 20 basis point cut to the medium-term lending facility (MLF) and a 50 basis point cut to the reserve requirement ratio (RRR).

Related Topics:Centaline China Property Crisis National Bureau of Statistics (NBS)

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Ramco Cements employee wins silver at Japan Para Badminton

He partnered with Paralympian Sukanth Kadam to win this medal.

Published

1 day ago

November 12, 2024

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Dinesh Rajaiah, an employee of Ramco Cements, won Silver medal in the men’s doubles event in the Japan Para Badminton International 2024 held in Tokyo. He partnered with Paralympian Sukanth Kadam to win this medal. Notably Sukanth Kadam had finished 4th in the men’s singles in Paris Paralympic Games which concluded in September 2024.

Japan Para Badminton International 2024 was held in Tokyo from 22nd to 27th October 2024 where more than 200 players were in the fray.

Dinesh, despite suffering a shoulder injury and having his right shoulder heavily taped, treated the audience to a nail biting final. The duo was down 16-20 in the second set and fought back to take the game to the third set where they lost 16-21. Being the last match of the event, the pair won hearts of the audience for their never give up spirit.

Dinesh breaks into the top 15 in the BWF Para World Ranking in men’s singles category and is now ranked 14 in the world. Ramco Cements has been supporting Dinesh Rajaiah ever since he showed his talent in an inter unit tournament of Ramco Cements in 2017. The company had then encouraged him to take up professional badminton coaching and has been sponsoring him for all major international tournaments. Ramco Cements wishes Dinesh all success in future tournaments.

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Asian Paints Sees 43.71% Profit Dip

Asian Paints reports significant profit decline in Q2.

Published

1 day ago

November 12, 2024

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Asian Paints has reported a 43.71% year-on-year decline in its net profit for Q2 FY25, amounting to a substantial reduction in earnings. The leading paint manufacturer attributed this decline primarily to increased input costs, a competitive market environment, and a slowdown in consumer demand. Despite the lower profit, the company’s revenue saw a moderate increase, reflecting its ability to maintain strong market presence in the face of challenges.

The company’s margins have been impacted by rising raw material prices, particularly in key components used in paint production. Additionally, the ongoing economic conditions, coupled with sluggish demand in certain segments, have put pressure on profitability. However, Asian Paints remains optimistic about its long-term prospects, focusing on strategic innovations and expanding its market share in the premium product segments.

In response to these challenges, the company has reaffirmed its commitment to cost-efficiency and improving operational performance. Asian Paints continues to explore new avenues for growth, including enhancing its product portfolio and leveraging its extensive distribution network to drive sales across diverse consumer segments.

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Ambuja Cements seeks CCI approval to acquire majority stake in Orient

Ambuja Cements’ stake would rise to 72.8 per cent, as per the notice filed with the CCI.

Published

1 day ago

November 12, 2024

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Billionaire Gautam Adani-led Ambuja Cements has sought approval from the Competition Commission of India (CCI) for the acquisition of a majority stake in CK Birla group firm Orient Cement in a deal worth Rs 81 billion.

According to a notice from the CCI, the proposed transaction involves a two-stage acquisition process, which was initiated through two share purchase agreements (SPAs) on October 22, 2024. As part of the deal, Ambuja Cements will initially acquire a 46.80 per cent stake in Orient Cement. This includes a 37.90 per cent stake from the current promoter group and an additional 8.90 per cent from certain public shareholders.

The notice further stated that following the acquisition of shares, an obligation would be triggered for the acquirer to make an open offer under the Sebi’s SAST (Substantial Acquisition of Shares and Takeovers) rules, aimed at acquiring up to 26 per cent of the expanded share capital of the target company. If the open offer is fully accepted, Ambuja Cements’ stake would rise to 72.8 per cent, as per the notice filed with the CCI.

In October, the Adani Group, led by Gautam Adani, had announced the signing of a binding agreement to acquire Orient Cement (OCL) at an equity value of Rs 81 billion. This acquisition would increase Adani Cement’s capacity by 16.6 million tonnes per annum (MTPA), which is operated through Ambuja Cements.

Ambuja Cements, part of the diversified Adani Group, is a leading cement and building materials company in India. It operates 22 integrated cement plants, 10 bulk cement terminals, and 21 grinding units across the country.