China Vanke Co Ltd (18V.BE)

China developer Vanke sees pressure on profit amid market downturn

Chinese state-backed property developer China Vanke said its profit would be under pressure in the short term amid a market correction, but that would not hurt its cashflow. China's real estate market, which accounts for roughly a quarter of the world's second biggest economy, is grappling with a debt crisis that has rattled global markets and sparked fears of financial system contagion at a time when the country is already struggling with a broader slowdown. Shenzhen-based Vanke, which is considered to be financially sound, on Wednesday reported a 19.4% fall in net profit year-on-year to 9.9 billion yuan ($1.36 billion) for the first six months of this year.