"For those developers with sufficient cash in hand, it is natural for them to enter the mining market for greater profits," he said.
According to financial statements by housing companies, more than half of property developers enjoyed a profit margin of around 60 percent on their investment in mining, while about one third posted a 20-percent return on mining-related investments. Only a few companies suffered losses.
For example, the Shenzhen-listed Shandong Zhongrun Investment Holding Group, swung back to profit last year after a losing streak of two years, boosted by its investment in the mining industry, according to the company's annual report.
The Jinan-based house developer invested 500 million yuan last November to set up a subordinate company to carry out mining development.
A handful of house developers, such as Zhuhai Port and Shanghai Wanye Enterprises, also joined the wave looking for investment in mines.
Analysts urged caution, however, saying mining may not save some housing developers squeezed out by the country's tightening measures over the housing market because of underlying risks.
"The risks can be huge as the country has imposed stricter control over the mining industry, and getting a mining license isn't as easy as before," said Shi Jingxi, a member of the CMA.
Shi said factors regarding technology, environmental protection, community relations, logistics and price fluctuations of mineral products may also jeopardize developers' investment in mining.
Developers' input in mining would remain a good investment only if the current commodity price increases can last, he added.
According to financial statements by housing companies, more than half of property developers enjoyed a profit margin of around 60 percent on their investment in mining, while about one third posted a 20-percent return on mining-related investments. Only a few companies suffered losses.
For example, the Shenzhen-listed Shandong Zhongrun Investment Holding Group, swung back to profit last year after a losing streak of two years, boosted by its investment in the mining industry, according to the company's annual report.
The Jinan-based house developer invested 500 million yuan last November to set up a subordinate company to carry out mining development.
A handful of house developers, such as Zhuhai Port and Shanghai Wanye Enterprises, also joined the wave looking for investment in mines.
Analysts urged caution, however, saying mining may not save some housing developers squeezed out by the country's tightening measures over the housing market because of underlying risks.
"The risks can be huge as the country has imposed stricter control over the mining industry, and getting a mining license isn't as easy as before," said Shi Jingxi, a member of the CMA.
Shi said factors regarding technology, environmental protection, community relations, logistics and price fluctuations of mineral products may also jeopardize developers' investment in mining.
Developers' input in mining would remain a good investment only if the current commodity price increases can last, he added.
