China Vanke to offer rare debut high-grade property bond – and more of Today’s China Real Estate Links | March 6, 2013

Here is a list of the day’s latest China real estate news collected from around the web:

• China Vanke to offer rare debut high-grade property bond

  China’s biggest residential property developer China Vanke is planning a debut US dollar bond, offering investors the chance to buy a rare high-grade bond out of the China property sector.

  The company kicks off investor meetings in Hong Kong, Singapore and London today. Bank of China (Hong Kong), Deutsche Bank, DBS, HSBC, J.P. Morgan and UBS are arranging the meetings. According to one source, Vanke is looking at a longer tenor, possibly in the range of seven to 10 years.

• China Real Estate Developers Hit Headwinds

  Shares of the three property companies in China that made the Fab 50 list in September have soared since then, along with some of the billionaires behind them. But Beijing’s tough new controls to rein in the country’s housing market, announced on Friday, may signal it’s time to take profits.

  Chinese property stocks fell sharply Monday and the three companies dropped right in line with the sector. Poly Real Estate Group plummeted 10%, the maximum allowed for one day. China Vanke was down 6.1% and Longfor Properties, 5.5%. The Fab 50 is Forbes Asia’s annual list of the 50 best-performing, big listed companies in the Asia-Pacific region.

• China Vanke CEO sees property bubble, hopes leaders can fix it

  China’s property sector took a beating Monday in response to new government measures to take the heat out of the real-estate sector, including a new property capital-gains tax and other disincentives.

  However, a report from CBS News “60 Minutes” on some of the issues facing Chinese property developers, probably didn’t do sentiment any favors either.

  CBS correspondent Lesley Stahl interviewed Wang Shi, the chairman and founder of China Vanke CN:200002 -2.67% – the biggest property-development firm in China. Some of Wang’s most notable comments were on the affordability of housing and the possibility of an asset-price bubble in the Chinese housing market.

• China Moves to Cool Housing Market, and Stocks Plummet

  Faced with a difficult combination of an economy addicted to cheap credit, exorbitant real estate prices fueled by that credit and mounting public concern that housing is no longer affordable, China’s government is laying plans for steep new taxes on home sellers.

  But those plans set off a sharp drop in Chinese stocks on Monday, as investors worried that the taxes could take a heavy toll on developers, an important sector of the Chinese economy. Any slowdown in real estate investment could ripple quickly across the entire economy, reducing demand for steel, cement, household appliances and many other mainstays of China’s manufacturing-dependent economy.

This list is updated daily, so tune in again tomorrow for more up to date information, or subscribe to our daily email news digest to get this delivered to your mailbox.