China Real Estate: Shares Prices Performances For The Sector Since 200924 May, 2011, 15:00. Posted by Zarathustra
Tags: Real Estate, Stocks
The physical real estate market in China has been doing very well, for the past 2 years. Not until recently do we see some meaningful slow down in activities in the market, but real estate prices are still staying firmly at high level and refuse to correct (for now).
Many of real estate companies stocks, however, have been performing quite poorly for the past year or so.
Looking at some of the real estate companies stocks traded in Hong Kong, shares prices have pretty much peaked on late 2009 and early 2010, and since then many of the prices have been on slow decline till now. Overall, it is fair to say that the sector overall did not do well.
Historically, real estate stocks prices tend to lead the physical real estate market cycle somewhat, although the lead times vary across countries. If this holds for China, that’s a glaring warning sign. Of course “This time is different because it is China” theorists will think that this does not hold because, well, this is China.
Below are some of the losers and winners of Chinese real estate stocks traded in Hong Kong that I could tell off the top of my head. Of course, these are by no mean exhaustive.