Receding COVID-19 Impacts in China to Aid Sales Performance; Evolving Operation Focus with Continuous Industry Polarization
The first phase control of the COVID-19 in China starting from March 2020 has proven to be effective, with sales and construction activities gradually recovering since then. Although we expect total contracted sales of China property developers to slightly decline in 2020 based on the 1H 2020 performance, divergence in sales performance continues. Some of our relatively larger-scale rated Chinese property developers’ (such as CIFI, Logan and China Aoyuan) contracted sales recovered remarkably, while some others of smaller scale are still trailing behind. We have noticed some medium- to large-sized developers being able to achieve c. 40-50% of full year 2020 sales target.