China Vanke Gets First Hong Kong Sell Rating as Pressure Mounts

(Bloomberg) — Hong Kong-listed shares of China Vanke Co. Ltd. got their first sell rating from Wall Street brokerages, as the developer grapples with deepening liquidity pressure and slumping profits.

The Chinese builder “will undergo a challenging time of deleveraging and relying on banks and state-owned enterprises’ support,” JPMorgan Chase & Co. analysts including Karl Chan wrote in a note dated Monday. Vanke’s decision not to pay a dividend with last week’s results are among other reasons for investors to be worried, they added. The stock dropped by as much as 12% to a record low in Hong Kong on Tuesday.