effected by the slowdown in pricing.......................... Prices in Beijing rose 8.9% y/y in April, down from +10.3% the previous month. On a sequential basis, prices eased to +0.1% m/m from +0.4% in March. Shanghai house prices rose 11.5% y/y in April, versus +13.1% the previous month, and rose 0.3% m/m, versus +0.4% in March.
Amid rising global concerns that China's cooling housing market could drag economic growth even lower, the People's Bank of China told the country's biggest banks in a meeting last week to continue providing mortgage loans to homebuyers.
Neither an official PBOC statement about the meeting, nor unverified minutes circulating online in the days after, made any mention of providing credit support to developers.
Well that was nothing but a childish exchange on all sides. The sad part here is that we have all lost money on this investment. And I use the word INVESTMENT guardedly. I knew what I was getting in to. No one to blame but myself. This has Bankruptcy written all over it, or, as in the case with many Chinese companies listed here, they will just go dark and we will never hear from them again. I have already mentally absorbed the "investment" as a total loss.
GUANGZHOU, May 18 (Xinhua) -- At least six cities in China have loosened controls over the property market and more are expected to do the same as local governments are worried that sluggish home sales may drag on the economy.
Zhang Dawei, chief analyst with Centaline, a leading property agent in China, told Xinhua on Sunday that policies once aimed at curbing excessive growth of the property market appear to be loosening across China.
"More than 30 cities nationwide are expected to loosen controls on the property market as the market will continue cooling in the near future," said Zhang.
Note also Morgan's 14 PT this morning. The market does not think much of EJ's other businesses as LEJU'smarket cap IS NOTABLY higher now. The market is waiting for EJ's advertising numbers Tuesday IMO. Right?
Blue, the loosening of mortgages was made official, although I just read opposing opinions of its potential effectiveness. Oddly enough it was Nomura that feted the news. Just days ago, Nomura stated the crash WAS HERE. I don't see any way EJ can meet or beat. But it appear s this stock runs more on govt policy than actual earnings. Unless EJ pulls a rabbit out of their hat ala SFUN......the key is that obviously ecommerce will not be as scintillating but WHAT ABOUT ADVERTISING?Are developers advertising MORE in down times? This is THE KEY!!!
this company rests almost solely with the government and their willingness or unwillingness to support housing. I just read a supposed leakedcomment from a high govt officially indicting they are telling lenders to PUSH THROUGH HOME LOANS AT REASONABLE RATES. On the other hand, Shanghai property new home sales ARE ABYSMAL. SO THE QUESTION IS.....WILL THE GOVT MARK Q2 AS THE BOTTOM?
This comment also on property bonds is also validating the 2Q bottom. Two opinions therefore. For whatever they are worth. Keep in mind one negative opinion (Nomura) equals about 20 positive outlooks.
"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.
Been watching him on CNBC. He loved Pulte yesterday. Do you normally follow his picks and if so how accurate has he been?
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.
LEJU now below the IPO price.
I mean, my gosh, you would think some of this was baked in. Fer crying out loud it went down 45% in the two months prior to earnings. Heck, they missed by a smidgeon only on the full year, and the tale of the tape is still out on that. That could change radically either way. The current Q was spot on.
And they take another 10% hit yesterday. This is nuts. This will bounce HARD. Government has to step in here on real estate and they know it.
May expires May 16. Damn, a week later than normal. Seems they have been pushing back releases a few days each passing year.
Bill, you only consider yourself stupid I feel I am borderline moronic. Oddly enough, I too breathed a sigh of relief after the SFUN numbers. They basically MET on all fronts. And then the previous month's beat down was not baked in???? Of course, the attention given to the supposed collapse of Chinese property has reached EPIC proportions in the press.
Comment from SFUN CEO in CC in response to WHY HE THINKS THE SLOWDOWN COULD LAST TWO MORE QUARTERS................... We have seen signals that the government may do something to revitalize the market. So I think that could happen, and which has already happened among six cities. many reasons.
Another reason is it really look at the demand for properties in China. It is fundamentally still there. It is still strong. People still want to buy and to have the purchasing power to buy. So with that fundamental in mind and plus the policy adjustment, I think the market is going to recover hopefully after six months.