I considered the March CPI report a negative one for Chinese developers. If China can secure a soft landing or even accelerate its growth, the government will surely maintain or even tighten its real estate curbs. My take is if China see hard landing risk high, the government may implicitly relax its real estate curbs to allow more construction activities to boost the economy.
Today, most Chinese ADRs are outperforming the S&P, but not XIN and its real estate peers. The market clearly understand the basic logic I just mentioned.