EXECUTIVES at nearly a dozen listed Chinese developers say they will ramp up investment in property this year thanks to the central bank’s interest rate cuts, a vote of confidence from a sector accounting for 15 percent of economic growth.

    China’s real estate investment growth slipped in the first quarter to its lowest rate since 2009 as developers focused on clearing excess inventory, but rare comments from senior executives offer hope of a near-term pick-up in home sales and a knock-on boost for about 40 related business sectors.

    Zhang Peng, president of Beijing-based Modern Land China Co., welcomed the “positive signals to real estate companies” in Sunday’s interest rate cut, China’s third in six months.

    “The central bank is actively loosening monetary policy. This will release more lending quotas from financial institutions and lower funding costs,” he said.

    Executives at nine developers said they were confident the latest rate cut would speed up investment, while three others said a decision on whether to ramp up spending depended on market sales.

    Any pick-up in building by developers would be a boon to raw materials industries inside and outside China, which have been hit hard by the slowdown in the country’s once booming property market.

    Of the 12 listed developers surveyed, only China Resources Land, Country Garden and Yuzhou Properties agreed to be named, while the rest declined. Modern Land China did not complete the survey.

    Eight of the developers said they were optimistic that the rate cut would spur home purchases, while two more, including Yuzhou Properties, were “very optimistic.” Country Garden was “cautiously optimistic.” (SD-Agencies)