Shares of Chinese property developers are sliding in Hong Kong amid persistent concerns over the sector-wide weakness
CIFI Holdings is slumping more than 10%, R&F Holdings sliding 6.7%, KWG Group down 6.5%, Country Garden and Times China down 5.4%, Longan Group sliding 5.3%.
The latest data released by the National Bureau of Statistics showed that China’s housing market weakened further in August, more cities saw home prices decline. Read more …
Since mid-August, shares of Chinese property developers has outperformed the MSCI China Index by 17%, however, despite the expectation for policy easing, the rebound of sector will likely not be sustainable due to multiple factors including the tepid month-to-date sales, share placement risk and concerns over pandemic-induced lockdowns, etc., said JPMorgan in a note on Friday. Read more …
NBS data showed that real estate sales remained sluggish in August said Kaiyuan Securities. In the short term, default risks among private property developers and Covid flare-ups continue to dampen home purchases, and in the long term, a sector-wide recovery is unlikely despite housing policy easing, though a recovery could be seen in key city clusters, it said.
