Property developers managed to outfox the government in Beijing
Today’s headlines feature a lot of persistence. Property developers in Beijing were not deterred by new rules for land auctions finding a way to easily circumvent them while Evergrande continues to be persistent in its efforts to buy shares in China Vanke and Yanlord has found a way to stay profitable despite the Chinese government’s tightening measures. Keeping reading for all of the news.
Home Prices Cool in China’s Biggest Markets Following Policy Blitz
Call it a tale of two tiers.
Chinese property prices were a mixed bag during October. Prices cooled slightly compared with the previous month as more than 20 cities enacted tighter restrictions on property to restrain rising prices.
But beneath the surface, there are significant variations among tier-one cities–Beijing, Shanghai, Shenzhen and Guangzhou–where demand for property is highest–and smaller cities in the inland provinces. Read more>>
Property Developers Undeterred By Beijing’s Market-Cooling
Property developers, desperate to acquire land for their projects, have steamrolled a three-step process that Beijing’s government put in to cap land costs, in a sign that the new rules are inadequate to rein in runaway housing prices in the Chinese capital.
Only one of four pieces of land put up for auction this week in Beijing found a winner, as bids from about 20 developers blew threw the first two stages of the process within minutes. A183,300 square meter (1.97 million square feet) parcel of land in Haidian district sold for RMB5.76 billion (HK$6.5 billion), when the sole bidding consortium of three developers pledged to keep 100 per cent of the apartment units built on the land for rent only. Read more>>
China Evergrande Lifts Vanke Stake Again
Property developer China Evergrande Group said it had further nudged up its stake in China Vanke to own 9.45 percent of its larger peer, adding that it had spent RMB22.3 billion ($3.2 billion) to amass its holding so far.
China’s second largest homebuilder said in a statement it that in the past week it had bought another 1.167 percent of Vanke, which is at the center of a rare high-profile and complex corporate battle. Read more>>
Yanlord Continues To Flourish In China’s Tightening Market
DBS Vickers Securities is reiterating its “buy” recommendation on China-based real-estate developer Yanlord Land Group, with a price target of S$1.46, in anticipation of decent 4Q earnings delivery and a higher dividend payout.
This comes despite China facing a recent tightening in its property market, which the group’s management expects may gradually impact the business, but without substantially lowering profitability in all of the cities in which Yanlord operates. Read more>>
Taiwan’s Cathay Life To Increase Overseas Investments
Taiwanese insurance giant Cathay Life Insurance (Cathay Life) is looking to increase its overseas portfolio by up to NT$150 billion (US$4.72 billion) in a bid to seek better investment returns. Lee Chang-ken, the company’s president, said the insurer had trimmed its onshore real-estate investments to 9.7 percent from around 10 percent of its portfolio as the company shifts more money towards overseas investments. Cathay Financial is the holding group of Cathay Life.
According to the Taipei Times, Cathay Life is looking to raise its overseas investments to 3 percent from 1 percent at the moment. This translates to investments of around NT$100-$150 billion. Read more>>
Chinese Investors To Establish Mega Construction Material Mall In Pakistan
Chinese investors have a keen interest to build a mega construction shopping mall to revamp the construction sector of Pakistan in line with modern construction practices employed in developed world.
Chinese officials visited the country to select the site for this mega project that will be equipped with all ultra-modern construction and building development equipment and technology. The delegation pointed out that construction in Pakistan is conventional and energy inefficient. Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter for headlines as they happen.
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