Deutsche just put out a nice write up with a BUY rating but a reduced PT on SFUN of 16. They called for a bottom in the second Q on China housing. Whereas Nomura the other day said the housing crash has started. Investors have jumped all over the Nomura report, of course, as evidenced by the shellacking of these stocks. A slight reduction of revs and earnings for SFUN, but nothing that would have warranted their 45% haircut.
"Sentiment is a bit weak and the market will charge a pretty high premium if these guys come," according to a Singapore-based trader.
The bearish sentiment in Chinese property could continue for at least another two months, according to a credit analyst.
However, the market for real estate bonds could also start to show signs of improvement as early as next week.
"This is the start of the beginning of negative sentiment but I don't think it's going to last for a long time. Maybe by the end of next week we may see things turn around since positioning is fairly light," said the trader.