Then why are Vanke and Poly Real Estate stock falling since early February? If Shanghai does not believe in the future of its RE industry there should be no reason for Xin to trade any higher from here.
Complete lack of PR, leaving investors guessing about material facts, no inventory, high cash balance and yet they borrow money, Reno and Irvine properties did not sell as per cc (wasn't Gurnee beings from Reno?), now a serious possibility that Wang resigned because he found something he didn't like or infighting in management, persistent worries about the restructuring if the Chinese economy (and according performance of said stock markets), and simply the fact that XIN trades sidewise in a market that is up over 25% since Q1. Not a good investment, all I am holding at this point is a couple of April 2014 calls. And I have already written those off in my head as Indoubt this ever get to "fair value".
Why is Shanghai and Shenzhen stock market valued so low and P/E is dropping to extremely low levels??? Yes because all chinese invest in apartments instead, many small investors without knowledge got burnt during the reace during 2006 to 2008.. I don't know how many percent the chinese stock market went up then.. Thats the reason why many chinese are reluctant to invest in stocks nowadays and invest in apartments instead
For 2013 XIN’s PE will be about 3 at PPS US$ 5.50; for Vanke PE is 10 – 12 at PPS HKD 13. XIN is able to grow and it has room to grow. I still trust in the XIN management. XIN pays a good dividend regularly. I believe XIN has a good future, perhaps even a bright one. Of course, there are a few things that are not to my liking.