China - Housing 05 (Jul 16 - Oct 21)

[winston]

China Property Sector: Expert call takeaways: The worst of the sector should be over

More policy relaxations down the corner, likely focused on the liquidity front in a controlled manner

Buyer sentiment remains subdued, with gradual improvement expected

Land supply and new starts will unlikely regain lost ground and could potentially translate into a supply shortage in 2022

Watch for entry opportunities on quality names with better capability to acquire land – COLI (688 HK), Logan (3380 HK), CG (2007 HK)

Source: DBS

[winston]

China Property Sector: Are refinancing and liquidity risks sector-wide concerns?

Fantasia’s unexpected default on its US$200m offshore bond and around US$7m coupon interest despite its apparently healthy balance sheet ignited market fears over refinancing risks of other Chinese developers and concerns over their risk of defaulting their offshore bonds.

However, our analysis shows these concerns in China’s property sector may be overdone as most developers’ liquidity position remains strong.

Source: DBS

[behappyalways]

中國整頓房市泡沫 避免成為第二個日本 TVBS文茜的世界財經周報 20211017 X 富蘭克林‧國民的基金
https://m.youtube.com/watch?v=z83KsHMUuTs

[behappyalways]

China Home Prices Drop For The First Time Since 2015 As Existing Home Sales Crash 63%
https://www.zerohedge.com/markets/china ... s-crash-63

[behappyalways]

China Widens Property-Tax Trials With Levy on Home Owners
https://time.com/6109874/china-property-taz/

[winston]

Pilot property tax to hit some regions

The top decision-making body of the Chinese parliament, has said it will roll out a pilot real estate tax in some regions.

The State Council, or Cabinet, will determine which regions will be involved and other details, the official Xinhua news agency reported.

But talk of the plan is coming at a sensitive time, as the property market is showing significant signs of stress and home prices have started falling in tens of cities.

The tax will apply to residential and non-residential property as well as land and property owners, but does not apply to legally owned rural land or where residences are built on it, Xinhua said.

The pilot schemes will last five years from the issue of the details from the State Council.

"Land sales are not a sustainable source of government revenue anymore," Capital Economics said in a note on Friday. "Gradual implementation should also mitigate fears that a tax could cause prices to crash."

Analysts expect a wider pilot to first include wealthier and economically more diversified regions in eastern and southern China such as the provinces of Zhejiang and Guangdong.

Source: The Standard

https://www.thestandard.com.hk/section- ... me-regions