Would you dare to buy Real Estate Stocks in China?
WIthout the government stimulus, I think many of the Chinese Developers would go bankrupt....
Country Garden, the largest developer in China has peaked in 2018 at 18+ dollars and todate, it has dropped more than 97% of its share price to recover at a miserable 2.83 dollars. Financially, it is still on very shaky grounds as no one knows how long is stimulus would last. There are still many unresolved problems internally and externally. A large percentage of over hang and uncompleted projects in the entire China is still happening, probably creating a loss of confidence amongst investors.
On the other hand, the zero Covid policy has also been a catalyst as well. Without able to get out of the house or return to office as normal, many things remain uncertain. Why would someone want to park their money in real estate when things appear so murky at this moment ?
Thus, I think sales would take a fairly long time to recover and for investors confidence to return.....
Country Garden, the largest developer in China has peaked in 2018 at 18+ dollars and todate, it has dropped more than 97% of its share price to recover at a miserable 2.83 dollars. Financially, it is still on very shaky grounds as no one knows how long is stimulus would last. There are still many unresolved problems internally and externally. A large percentage of over hang and uncompleted projects in the entire China is still happening, probably creating a loss of confidence amongst investors.
On the other hand, the zero Covid policy has also been a catalyst as well. Without able to get out of the house or return to office as normal, many things remain uncertain. Why would someone want to park their money in real estate when things appear so murky at this moment ?
Thus, I think sales would take a fairly long time to recover and for investors confidence to return.....
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www.cnbc.com/2023/01...l-estate-survey.html
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While the government has launched several measures to help lift up the property market, could it be too late to shore up the snowball effect over the years ?