Vanke reports 17% drop in profit

HONG KONG: Mainland property giant China Vanke has posted a 16.7 percent drop in net profit, to 4.03 billion yuan, for 2008.

Vanke Chairman Wang Shi yesterday attributed the setback to a provision for diminution in the value of 13 projects worth 890 million yuan.

Wang also rebuffed speculation that the company had taken the lead to slash prices in the market. "I admit that we initiated the price cut last year, but the extent of the cutback was moderate - between 10 to 15 percent - compared to peers."