(27 Oct 2008) In face of the stock turbulence of HK stock market today, China Overseas Land and Investment Ltd (“COLI” or the “Company”, stock code: 00688) states that despite the significant challenges from both internal and external markets, the business performance of COLI is satisfactory so far. Both the short and long term debt levels of the Company are low indicating the healthy financial position of the Company.
The Company’s views on the prospects of China property market are: (1) In order to sustain strong economic growth, both local and central government recently launched varying packages of measures to support the property market. The Company believes those measures will help stabilize the economic growth, stimulate the housing demand and the domestic consumption. (2) The strong wait and see sentiment in the current property market is attributable to the confidence issue. The Company believes that this confidence will gradually be restored as both the central government and the local government’s supporting measures begin to take effects.
Regarding the joint venture project Chongqing International Community (previously named as Danzishi Project), the units for initial launch are the small portion of this sizable project. The land price per sq.m. for this new launch was RMB 1,500. The Company plans to launch at an average price of RMB 4,600 per Sq.m. therefore, will have significant room for profits. The Company will continue to adopt the pricing strategy of “open from lower to higher”.
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