McKinsey Report: “Finding the fast lane: Emerging trends in China’s auto market”

McKinsey released a new report on the passenger vehicle market in China (LINK).  Key points: After years of double-digit growth, China’s auto market is slowing down. Car ownership loses some appeal due to rental options, leasing, co-owning, and e-hailing. Value takes priority for many buyers and used cars are becoming a more popular option Link … Continue reading McKinsey Report: “Finding the fast lane: Emerging trends in China’s auto market”

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Impact of Recent Vehicle Sales Trends on US Listed Chinese Auto Suppliers (1Q16 Update)

Passenger Vehicle sales in China remain strong after the 50% reduction in the purchase tax on smaller vehicles at the end of September.  1Q16 sales were 6.8% higher than last year.  The long-term outlook remains mildly favorable due to the country’s low level of vehicle ownership and rising personal incomes. source: autoinfo.org.cn Commercial Vehicle sales in China in … Continue reading Impact of Recent Vehicle Sales Trends on US Listed Chinese Auto Suppliers (1Q16 Update)

Xinyuan Real Estate’s Beijing Liyuan Project

Updated 4/14 On 4/12 Xinyuan announced its acquisition of a new land parcel in Eastern Beijing.  Some information about it was also provided on page 9 of the company's Investor Presentation released two weeks ago. source: Xinyuan Real Estate Average prices for new homes in the Tongzhou District are currently 31000 RMB/sqm, more affordable than prices … Continue reading Xinyuan Real Estate’s Beijing Liyuan Project

Comments on Xinyuan Real Estate’s Gross Margins

Xinyuan's recently filed 20-F shows the company's actual gross margin achieved each year by province and the estimated gross margin that will be earned on all projects currently under development.  Key conclusions: The company has a long-term record of success in its core markets of Zhengzhou and Suzhou/Kunshan Weak current profitability is largely due to … Continue reading Comments on Xinyuan Real Estate’s Gross Margins

Latest Housing Price Data for Xinyuan’s Markets

China Index Academy (a research unit of Soufun) released its monthly report of new home prices in 100 top Chinese markets (LINK).  On a national basis average selling prices rose 1.9% for the month and 7.4% from one year ago. Data for Xinyuan's markets are in the table below:   The Central China markets have … Continue reading Latest Housing Price Data for Xinyuan’s Markets

Chinese ADR Buyouts in Progress (Update)

Many pending buyouts progressed towards completion despite recent equity market volatility.  Since my last update: Mindray closed Global-Tech Advanced closed Homeinns closed Jiayuan has been approved and expects to close this month Xueda has been approved and expects to close this quarter DangDang received a competing bid at a higher price New buyout offers: Sinovac … Continue reading Chinese ADR Buyouts in Progress (Update)

Xinyuan 1Q Contract Sales Estimate from CRIC

China Real Estate Information Corporation (CRIC – a subsidiary of E-House) released estimated 1Q16 sales data for the country’s top 100 property developers. (LINK) Xinyuan China is shown at #81 with estimated sales of 3.24Bn RMB CRIC does not have access to any official company records and compiles its estimates from 3rd party sources like … Continue reading Xinyuan 1Q Contract Sales Estimate from CRIC