China Real estate information Corp. reported a net loss in the third quarter on Tuesday, and warned that the Chinese Government efforts to cool the real estate market is hurting the growth of online business. Shares fell 10 percent in late morning trade.
China real estate information and consulting company posted a loss of $ 413 million, or $ 2.94 per share, down from earnings of $ 6.6 million, or 4 cents per share, in the same period a year earlier.
The latest quarter's results include a goodwill impairment charge of $ 417.8 million related to the company's online unit, which makes more than half the income. Goodwill is the size of the assets which are not physical, such as brand value.
The company said it expects growth to be slower than expected for the next few quarters to this business due to the tightening of credit, be wary of advertising expenditures and developer of the Chinese Government
The Chinese Government says curbs on credit and investment that are worn to cool the real estate boom will stay in place. Clampdown on credit has helped to slow the increase in the cost of housing but have been hurting real estate and construction industry.