China Vanke (SZSE:000002) is China’s largest developer of residential properties in terms of contracted sales. It has over 300 projects that are located in over 60 cities in mainland China. We see China Vanke’s land bank as one of the most diversified among its peers, which may help it deliver faster sales growth. In 2014, its contracted sales rose 26% despite a decline in the overall Chinese property market, which further solidifies its leading position in the industry. Being the largest homebuilder in China, it may benefit from the more accommodative policy environment in China since mid-2014, and the interest rate cuts in November 2014 has further helped reviving homebuyers’ confidence.
From Value Partners (Trades, Portfolio)’ Classic Fund Q4 2014 Commentary.
