China Vanke Buys Land in Beijing for RMB 3.3 Bil – and more of Today’s China Real Estate Links | October 15, 2013

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

• China Vanke Buys Land in Beijing for RMB 3.3 Bil

  China Vanke Co, the country’s largest property developer by market value, purchased a land plot jointly with Beijing Huayuhong Consultancy Limited in Beijing on Friday for 3.3 billion yuan ($539.22 million), the latest move to demonstrate developers’ confidence in the country’s property market.

  So far, Vanke has bought land plots at a total price of 80 billion yuan this year, according to a report released by BOC International (China) Ltd earlier this month.

• China Property Bonds Earn Five Times Global Debt Return

  Dollar bonds issued by China’s developers are delivering five times the global average for debt denominated in the U.S. currency as housing demand strengthens in the world’s most-populous nation.

  Property securities, which account for 32 percent of the Bank of America Merrill Lynch index of China’s dollar bonds, have advanced 5.7 percent since the end of June, after handing investors a 1.6 percent loss in the first six months of this year. That compares with a 3.5 percent average gain in overall Chinese notes in the greenback and 1.2 percent for debt in the currency globally, according to BofA indexes.

• Re-Examining The Chinese Property Market: Deflating Bubble Fears

  In economics, a so-called bubble is any deviation of an asset’s market price from its intrinsic value. Such deviations can be driven by a range of irrationally exuberant and speculative behavior: overly confident views of the future, rampant optimism, bandwagon effects, herd mentality, or a misplaced faith in one’s genius as an investor. Whether the Chinese property market represents a bubble of epic proportions hinges upon the nature of the demand. Do the country’s sky-high property prices reflect genuine, realistic views on the future consumption of housing services? Or are they speculative purchases driven solely by the overconfident expectation that house prices can go nowhere but up?

• China inflation rate rises on higher food prices

  Consumer prices in China rose more than forecast in September, fuelled mainly by a surge in food prices.

  Prices rose 3.1% during the month, from a year earlier, up from 2.6% in August, the National Bureau of Statistics said.

  The bureau said that food prices rose 6.1% from a year ago due to the impact of national holidays, as well as droughts and floods in some regions.

  Some analysts said that rising prices had reduced the chance of any major monetary policy moves by Beijing.

• Europe Becomes China’s Biggest Acquisition Target

  For the past several months, Asia’s richest man Li Ka-shing has been selling most of his real estate and businesses in China and buying British companies related to public facilities.

  If not so long ago Chinese investments in Africa and South America were regarded as more compelling, for the past two years it seems China’s participation in acquisitions in Europe has been attracting greater attention.

  Statistics confirm there has been a sudden increase in Chinese acquisitions in Europe.

This list is updated daily, so tune in again tomorrow for more up to date information.

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