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Upstream and downstream firms of property industry under great pressure

2015-09-24 10:07

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Industries related to the real estate industry, such as cement, iron and steel, glass and engineering machinery industries, are experiencing a slow process of de-capacity due to undesirable performance of the real estate industry, according to a report on Thursday by the Economic Information Daily.

Data released earlier by the National Bureau of Statistics (NBS) showed that China's real estate investment growth had posted decline for 20 consecutive months by August.

In addition, the net profit margin of over 60 listed real estate developers was only 8.4 percent in the first half of this year, according to their half-year report.

Experts hold that it's within expectation that real estate industry and industries of the real estate industrial chain will face pressure against the backdrop of slowdown of the economic growth and enterprises of these industries.

Yao Zhen, senior analyst of ABC-CA Fund Management, said that enterprises should possess some policy tolerance given the background of de-capacity and de-stocking and the price drop and tightening profit margin are a natural process amid economic adjustment.

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