China - Housing 05 (Jul 16 - Oct 21)

China - Housing 05 (Jul 16 - Oct 21)

Postby winston » Mon Jul 18, 2016 2:18 pm

China’s Home Price Growth Slows

By Shuli Ren

China’s real estate market has been the bright spot this year. But growth in home prices in China’s 70 major cities slowed in June, data from the National Bureau of Statistics show.

In June, only 55 of the 70 largest cities saw their home prices rise from May, versus 60 a month ago.

On average, home prices in China rose 0.8% month-on-month in June, versus 0.9% in May.

Source: Barron's Asia
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Re: China - Housing 04 (Sep 14 - Dec 16)

Postby behappyalways » Tue Jul 19, 2016 5:50 pm

[經濟信息聯播]中國經濟半年報之樓市 安徽六安:房價連跌 幾年賣不完一個樓盤
http://big5.cctv.com/gate/big5/tv.cctv. ... 0718.shtml
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Re: China - Housing 04 (Sep 14 - Dec 16)

Postby winston » Fri Jul 22, 2016 3:37 pm

<Research Report>Citi Expects PRC Property Developers 1H16 Core Earnings to Rise 7% YoY; Earnings Visibility Lifted

Citigroup, in its report, foresaw the interim results of PRC property developers to be satisfying and that core earnings to grow 7% yearly, revenue up about 10% and gross profit steady at 26.8%.

It anticipated 2H16 revenue to be better.

Its top picks were CHINA OVERSEAS (00688.HK), CHINA RES LAND (01109.HK), LONGFOR PPT (00960.HK), R&F PROPERTIES (02777.HK) and CIFI HOLD GP (00884.HK).

After the strong sales in 1H16, the broker expected PRC property developers to be benefited by huge amount of unrecorded sales, lifting the profit visibility for 2H16 until next year.

The broker reiterated PRC property developers at its profit upside cycle.

Source: AAStocks Financial News
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Re: China - Housing 04 (Sep 14 - Dec 16)

Postby behappyalways » Thu Jul 28, 2016 3:45 pm

Property Markets in Top Tier Cities Continue to Sizzle in July
http://english.caixin.com/2016-07-27/100971480.html
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Re: China - Housing 04 (Sep 14 - Dec 16)

Postby winston » Wed Aug 03, 2016 8:12 am

Squeeze on China land purchases

Some mainland banks have stopped extending loans for developers' acquisition of expensive development sites, dubbed "land king," which were sold off after the third quarter of last year, according to mainland media The Paper.

Citing a real estate industry report compiled by a joint equity commercial bank, The Paper said the bank reduced lending to the country's top 20 developers to just 60 percent of land costs and to only 50 percent for other developers.

"It will also lower the possibility for cooperators, who want to participate in developing the 'land king,' to acquire an equity [stake] through financing," The Paper reported, citing the report.

"But as no relevant regulation has been released, it is believed to be a risk control policy on the real estate market exercised by individual banks."

With more and more expensive sites on offer in the mainland of late, municipal governments have released new regulations to curb the red hot market.

In eastern Anhui, developers are required by local land and resources department to pay at least half of the price of a site, representing the first payment, after they bid for a piece of land. They can then pay the balance within one year.

Aside from this measure, sites left unused for two years will be taken back by local governments without any payment to buyers.

Meanwhile, home prices rose for the 15th consecutive month in July, according to China Index Academy data. Average new home prices in 100 cities rose by 1.63 per cent in July, it said.

Mainland developer Future Land Development Holdings (1030) plans to sell flats in its newly-bought land in Shanghai Hongkou for up to 120,000 yuan (HK$140,194) per square meter, making the units the most expensive in the area.

The site was bought by Future Land last month for 76,000 yuan per sq m, turning the site the new "land king" in the city.

However, Future Land chairman Wang Zhen-hua denied claims that the site is the new "land king," saying the company paid a reasonable price for it. "Selling prices of nearby new homes and second-hand flats are around 90,000 yuan," he said.

Source: The Standard
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Re: China - Housing 04 (Sep 14 - Dec 16)

Postby behappyalways » Thu Aug 04, 2016 11:41 am

[第一時間]樓市新觀察:深圳房價創四年最大跌幅
http://big5.cctv.com/gate/big5/tv.cctv. ... 0804.shtml
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Re: China - Housing 04 (Sep 14 - Dec 16)

Postby winston » Thu Aug 11, 2016 8:16 am

Home price curbs stay

by Carrie Chen

Price rises have prompted officials in some second-tier China cities to continue with strict rules on buying homes.

The municipal government of Suzhou in Jiangsu province, for example, has restrictions on home purchases and mortgages.

And authorities in Hefei, Anhui, have reminded banks they should not entertain loan applications from would-be buyers of a second home unless a mortgage on the first one has been repaid.

But Wong Chiu-yeung, chairman of China SCE Property Holdings (1966), said no new measures are required as economic fundamentals remain stable.

SCE's contracted sales rose 119.5 percent to 11.8 billion yuan (HK$13.7 billion) in the first half of the year. But net profit stayed flat at 631 million yuan.

Source: The Standard
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Re: China - Housing 04 (Sep 14 - Dec 16)

Postby winston » Fri Aug 12, 2016 9:48 am

Property - Overall (OVERWEIGHT) - Chinese developers offer high dividend plays

Chinese property dividend yield of 5% looks attractive vs. global declining return.

Developers normally pay about 30% of earnings as dividend and we expect them to stick to this on their robust sales and stronger financial positions.

We recommend investors look at KWG, Longfor and Shimao for stable high-yield (5-7%) as well as RF and CIFI for their high-yield and potential yield expansion.

Besides high-yield, these names are trading at attractive valuations of 42-59% discount to NAV.

Maintain Sector Overweight

Source: CIMB
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Re: China - Housing 04 (Sep 14 - Dec 16)

Postby winston » Mon Aug 15, 2016 12:50 pm

BNP Paribus Turns Bullish On China’s Property Developers

By Shuli Ren

Property stocks in mainland China are soaring for a second day.

This blogger asks traders why the real estate developers are soaring. Corporate actions are certianly providing the fuel. China’s largest residential real estate developer China Vanke (000002.China) is soaring limit up 10% for a second day amid heavy buying, while blue-chip commercial developer Dalian Wanda (3699.Hong Kong) has reportedly already gained shareholders’ approval on its $4.4 billion buyout deal to take its Hong Kong-listed shares private. Once Wanda leaves Hong Kong, presumably it will list in mainland China, which boosts the real estate stocks’ offerings there.

But investors and analysts are also turning more bullish ahead of real estate developers’ earnings.

Last Friday, BNP Paribus analysts Wee Liat Lee and Tracy Cheng raised their price targets on real estate developers.

It is well-known China’s property market accelerated in the first-half this year. Developers under BNP’s coverage have already delivered a sizable 71% year-on-year sales growth. Therefore, “we expect most developers we cover to raise FY16 contracted sales targets by 10-15% as 1H16 achieved 58% on average,” wrote the BNP analysts.

In addition, BNP sees better profit margins in the first-half, thanks to rising average sales prices.

Third, developers’ balance sheets will look better too. Sure, they are still paying astronomical amounts to buy land from the government, but sales and cash collection should exceed land acquisition, thereby lowering developers’ indebtedness – their Achilles’ heels.

In addition, real estate developers can now issue corporate bonds at lower costs. Country Garden (2007.Hong Kong), for instance, saw its average funding cost fall from about 10% in 2011 to 7.2% in 2015, and it issued 9 billion yuan in bonds at around 4.6% coupon rate in the first-half this year. As such, BNP Paribus thinks most developers will pay out higher dividends this coming year.

BNP Paribus particularly likes China Jinmao (817.Hong Kong), China Resources Land (1109.Hong Kong), China Overseas Land & Investment (688.Hong Kong) and Country Garden.

Blue-chip state-owned enterprises such as COLI, China Resources Land and Jinmao can see their core earnings accelerate first because of their faster asset turn and BNP likes Country Garden’s improving debt profile.

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... evelopers/
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China - Market Direction 02 (Jul 15 - Dec 16)

Postby behappyalways » Tue Aug 16, 2016 3:57 pm

Before cheering the weeding-out of competitors in Chinese real estate, investors should examine what's driving the trend and how it's being executed. Thinner margins and growing indebtedness are no cause for optimism.

China's Unhealthy Scramble for Land
https://www.bloomberg.com/gadfly/articl ... ong-reason
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