Property prices seem to have taken a hit in China over the past month and specifically the weekend. Go to Business News for an article on Shanghai property prices from the 28th, and Reuters from Mid-March for an article on Zhejiang Xingrun Real Estate going bankrupt and the bond default on March 7th.
Concern about China is widespread enough that a little company that is actually doing ok is going to get lost in the shuffle, especially given that XIN's own issues, which may be small in and of themselves, ( like no CFO) get compounded when there is already worry in the industry. Someone hears there is no CFO profits are going down and they don't take a second look. People who passivly own hear the headlines and sell without regard for value or specific price... All kinda makes sense in the big picture.
XIN doesn't have enough PR/IR to counterract all this stuff whether it is bad for XIN or not. At this point, XIN needs to put its money where it's mouth is and buy back shares and tons of them. This has mutiple benefits and summed up as "getting paid to make money". We'll see what they do here in a few weeks.
China property sector is full of pessimism. Xin's share price has nowhere to go but down. At this time, what Xin's management should do is aggressive buyback -- some scheme that would avoid those buyback restrictions, but i don't see that happening.
So what are you saying Brian, all bonds are the same? Are Xin's due tomorrow? There are a couple articles
on South China Morning Post. You get to read a few articles before you have to sign up. An example, Poly
had no trouble selling 500M bond in April.
Relax Brian, we're all stuck in the waiting game, and it doesn't matter how we complain about Xin's lack of
action, get used to it, it won't change.
just trying to explain the price action. I don't believe XIN's share action reflects how the actual company is doing, that's all. I like being able to explain why something is going down, and lately I believe it has more to do with China on the whole than XIN. I doubled down the other day and bought some calls for October. Wish I'd waited until today, but it's hard to call a bottom and I didn't want to get caught before earnings pop if there is one.