Markets & Economy

Century 21 China franchisor posts loss on ‘tough’ Q2

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IFM Investments Ltd. -- the exclusive franchisor of the Century 21 brand in China -- posted a second-quarter loss of $5.4 million as revenue slid by 18 percent from the first quarter, to $34.6 million. New capital gains tax regulations "severely impacted secondary transaction volumes in Beijing, resulting in lower-than-anticipated revenue," IFM Chairman and CEO Donald Zhang said in a statement. On an earnings call with investors, Zhang called it a "tough" quarter. The new capital gains tax regulations were one of "Five New Measures" implemented by Chinese officials in March to cool down the country's overheated housing markets. The measures, which targeted particular markets, also included higher down payment ratios, ceilings on new home prices, and limits on investor purchases. For the third quarter, IFM is projecting revenue will grow by about 5 percent, to between $36 million and $37 million. "With diverse revenue streams and a flexible network, we are confident that...