China Property Bubble To Rubble ?
SHIMAO is always first to be hit because of ITS NAME !!
Shi Mao ? Dead Cat ?
Latest SHIMAO6.625 01/2020 at 96.60 (7.26%) about 0.75 cts cheaper today.
YuZhou ? Fish porridge ?
YUZHOU11.375 (B/B2) at 109.60 (9.15%), about a dollar lower.
Then we have CHAODA, sounding like Chao Tar (Hokkien for burnt) which is not a property name but funny enough to be included.
For funny tickers, you can’t beat China Resources with CHIBEI ? hahaah which only hokkien speaking Singaporeans would appreciate. And the new one SHTGF which could pass off as acronym for SHIT GirlFriend, standing up for Shuntak.
All I can say is that prices are holding up despite the Shanghai Stock Exchange Property Index plunging 9.1%.
Last Friday’s measures include,
(1) imposing a 20% capital gain tax on property transactions;
(2) the PBoC to raise the down payment requirement and mortgage rate in cities, where property prices have risen quickly; and
(3) extending the “local resident” requirement to cities, where property prices have increased swiftly and
(4) for cities with “local resident” requirements, such policies shall be implemented in a more restrictive way
Right now we are waiting more details from the local governments so banks are trying to send out intelligently written credit analyses suggesting to clients to switch out of high end developers like Yanlord, Greentown and Shuion into YuZhou, KWG, Caifu and Fantasia.
To me ?
Who cares ? This is not a gentlemen’s club here. When one goes, all goes.
Just look at this Shimao 11% 03/2018 chart and tell me what do you see ?
- China’s Stocks Slump as Developers Tumble Most Since June 2008 (bloomberg.com)
- 60 Minutes’ Video Of China’s Ghost Cities Is More Surreal Than Anything We’ve Ever Seen (businessinsider.com)