Feb. 8, 2007 (China Knowledge) – Hang Lung Properties Ltd., Hong Kong's fourth-largest developer by market value, said first-half profit rose 42 due to a rising demand in China boosted property values that allowed the developer to charge higher rents.

Net income rose to HK$2.29 billion, or 59.2 HK cents a share, in the six months ending Dec. 31 from HK$1.62 billion, or 43.6 HK cents, a year earlier, Hong Kong-based Hang Lung said in a statement today. Sales fell 13% to HK$1.96 billion.

Hang Lung saw rental profit rise 26% in Shanghai in the first half, while its gains from revaluations more than doubled, as China's economic growth fueled property demand. Hong Kong Hong Kong rental profit rose 12% to HK$808.7 million. The company's overall rental profit rose 15% to HK$1.13 billion.

The company intends to focus on the China mainland market by planning to invest about HK$25 billion in 10 projects in the country over the next two years, Chairman Ronnie Chan said in June.

The developer said that it will pay an interim dividend of 13 HK cents a share.