Some forecast a 5% yuan devaluation in the next year.
" PNC Economics forecasts for the yuan to depreciate from 6.58 per dollar today to 6.90 per dollar by the end of December."
A 5% yuan devaluation will lower XIN's Chinese book value and earnings about 5%.....from what they would otherwise be without a devaluation.
My guess.....yuan devaluation fears. A typical headline from Barron's Asia.....
" China Stocks Sink In U.S. As Reserves, Oil Slip: More Yuan Devaluation Next? "
I have found about a dozen "Xinyuans" that are doing real estate in China. The only way I am sure if one of them is "XIN" .... is to see the red corporate logo of XIN which looks like 4 red houses inside a square. My favorite corporate logo, I have posted on IV. It's kind of like a Polish joke. LOL!
----- losing on this stock.-----
I haven't lost a penny on XIN. I have made good money on XIN in the past.....and plan to make money on my 1,000 share buy today, at $3.22, in the future. Have a sell order already in for $3.75. Besides any capital gains on XIN.... I get 17 cents, net of ADS fees per year, in dividends.
Nothing in that news rings a bell, to me, about "XIN". There are a dozen or more Xinyuans in China....which have nothing to do with "XIN" the NYSE listed company.. If you don't have a clue as to what caused today's share price drop in XIN....stay away from investing in individual companies and get a mutual fund when everything looks rosy in the future.
Schwab deducted 2 cents per XIN ADS that I hold, on 1/12/2016, from my account. I expect 2 cents to be deducted from my account, for each XIN ADS that I hold, around 1/12/2017.
Schwab deducted 1/4 cent per ADS, from my account, on 12/09/2015 when I got my 5 cent Q3 dividend.
I expect 3 cents, per ADS that I hold, to be deducted, from my account each year in the future that I hold XIN.
If this is a problem......stay away from investing in XIN.
My opinion only!
I believe I get a 2 cent per ADS fee deducted once a year, around the first of the year(deducted in the last month for me).....plus a 1/4 cent per ADS fee deducted from each dividend. If you can't handle a 3 cent a year fee, per ADS ,from a company earning about $2/ADS.....look elsewhere.
Yahoo tossed out most of my posts last night. On IV.....I list several other "Yahoo forbidden" new defined terms. "IPO" , "restructuring", "restructuring group" , etc. It appears XIN paid 1/2%, to the 13% bondholders, to give XIN much greater financial flexibility in the future.
Hopefully the institutions wait 6-9 months, or say.....$8 /ADS before they get involved. This will give XIN several chances to buy back shares at very attractive prices.....and I am in no hurry , in any case.
Looks like they had to wait for the new terms on the 13% bonds to announce it....
--------- BEIJING, Feb. 4, 2016 /PRNewswire/ -- Xinyuan Real Estate Co., Ltd. ("Xinyuan" or "the Company") (XIN), an NYSE-listed real estate developer and property manager primarily in China and recently in other countries, today announced the issue of the second tranche of the onshore corporate bonds (the "Second Tranche Bonds") by Xinyuan (China) Real Estate, Ltd. (the "Issuer"), the Company's wholly-owned subsidiary that targets the development of residential properties in China, has been completed with a coupon rate of 7.47%.
The issue size of the Second Tranche Bonds is RMB700 million (approximately US$107 million). The Second Tranche Bonds have a term of five years. The Issuer shall be entitled to raise the coupon rate and the investors shall be entitled to sell back the Second Tranche Bonds at the end of the third year. ---------
Two subsidiaries that could be listed(IPO) somewhere outside China.....
Xinyuan International Property Investment (Oosten, Manhattan)
Xinyuan Property Services
Besides allowing the issue of the next batch of onshore bonds.....there is a lot of talk about listing or IPO of a subsidiary. They added a number of new defined terms to the bonds....
“ “ Exempted Subsidiary ” means any Restricted Subsidiary established after the Effective Time organized in any jurisdiction other than the PRC that is prohibited by applicable law or regulation to provide a Subsidiary Guarantee or a JV Subsidiary Guarantee or create any Lien over its Capital Stock to secure any of the secured obligations subject to the Intercreditor Agreement; provided that (x) the Company shall have failed, upon using commercially reasonable efforts, to obtain any required governmental or regulatory approval or registration with respect to such Subsidiary Guarantee, JV Subsidiary Guarantee or Lien over its Capital Stock, to the extent that such approval or registration is available under any applicable law or regulation and (y) such Restricted Subsidiary shall cease to be an Exempted Subsidiary immediately upon such prohibition ceasing to be in force or apply to such Restricted Subsidiary or upon the Company having obtained such applicable approval or registration. ”
“ “ Qualified Exchange ” means either (1) The New York Stock Exchange, the London Stock Exchange, The Stock Exchange of Hong Kong Limited, the Nasdaq Stock Market or Singapore Exchange Securities Trading Limited or (2) a national securities exchange (as such term is defined in Section 6 of the Exchange Act) or a designated offshore securities market (as such term is defined in Rule 902(b) under the Securities Act). ”
[SHANGHAI] China will cut the minimum downpayment for some home purchases by five percentage points, the central bank said Tuesday, as it attempts to kick-start a sluggish housing market that is both cause and effect of a broader growth slowdown.
The People's Bank of China (PBoC) said on its website the minimum deposit for first-time home buyers would fall from 25 per cent to 20 per cent........
Full article on IV.
There are many modern drugs that will help with your raging paranoia.......just stay away from the illegal drugs that you use which amplify your paranoia.
I have been buying XIN lately.....they should make $2.00 earnings in 2016....or more! Also PVCT....which is a wild bio-speculation.....since they have never made a dime in earnings for years....like RTK....but I made $1/4 M profits in RTK without them ever earning a dime.
If I had more cash....I would get ELP or SSL....but bhp and rio would work fine long term. They may still be a buy for a year or more.
RTK should end up with 10% of UAN, 60% of that POS Pasadena, and a wood pellet business. Good upside on RTK....IF.... the UAN merger goes ahead(which it looks like it will do), Pasadena gets sold, and the pellet business turns profitable.