Small-Mid Cap China Property Stocks to Benefit from Shenzhen-Hong Kong Connect

The upcoming Shenzhen-Hong Kong Stock Connect program will significantly broaden the range of Hong Kong Stock Exchange listings available for convenient purchase through mainland Chinese brokerage accounts.  Background: Joint Announcement of the China Securities Regulatory Commission and the Securities and Futures Commission HKEX: Frequently Asked Questions Key facts: Expected launch in the second half of … Continue reading Small-Mid Cap China Property Stocks to Benefit from Shenzhen-Hong Kong Connect

Mid-Year Letter from Ronnie Chan of Hang Lung Group

Hong Kong real estate tycoon Ronnie Chan of Hang Lung Group has a reputation for writing insightful shareholder letters.  His latest is available on pages 2-8 of his company's 2016 Interim Report.  A bit of background about Hang Lung: Reputation for very long-term outlook.  The company completed its Harbourside luxury apartment tower in Hong Kong … Continue reading Mid-Year Letter from Ronnie Chan of Hang Lung Group

Benchmarking Xinyuan Real Estate after its rally

After a 78% YTD rally Xinyuan shares are no longer uniquely undervalued relative to competing Hong Kong listed Chinese real estate developers (prices as of 9/20) In absolute terms, Xinyuan and peers are all still at low valuations.  Relative to peers, Xinyuan trades at a below average price relative to earnings and book value, but … Continue reading Benchmarking Xinyuan Real Estate after its rally

Chinese ADR Buyouts in Progress (Update)

Prices of many pending buyouts of US listed Chinese companies fell sharply in May after Chinese regulators expressed concern over relisting these businesses in China through reverse mergers.  Reverse mergers provided a path by which a company could be trading in the domestic market in less than one year instead of potentially waiting 3-4 years to … Continue reading Chinese ADR Buyouts in Progress (Update)

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

Vehicle sales in China were 26.6% higher in August than one year ago. August Passenger vehicle sales were 26.3% higher than one year ago  with continued support from the purchase tax reduction that began last October.  Year-over-year comparisons should remain strong in the third quarter and then weaken in the fourth quarter.  Commercial Vehicle sales … Continue reading Impact of Recent Vehicle Sales Trends on US Listed Chinese Auto Suppliers (August Update)

Colony Northstar: Merger Pros and Cons for NSAM

Shares of the Colony Northstar merger parties have rebounded from their initial collapse after the announcement creating "A world-class diversified real estate and investment management platform": The background of the merger and the potential benefits were described in my earlier article (Colony Northstar: Will this team of overpaid former all-stars end up like the Brooklyn … Continue reading Colony Northstar: Merger Pros and Cons for NSAM

Comments on Recent News from Xinyuan Real Estate

A few observations about the bond offering and disclosures from the half-year financial statements: Bond Refinancing.  Xinyuan sold US$300mm of new three year notes at an 8.125% yield (Press release). Xinyuan is likely to exercise its option to redeem its currently outstanding $200mm 13.25% 2018 notes at a premium price of 106.625%.  The prepayment penalty … Continue reading Comments on Recent News from Xinyuan Real Estate

August 2016 Housing Price Data for Xinyuan Real Estate’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 2.2% for the month and 13.8% from one year ago. Data for Xinyuan’s markets are in the table below: The Central China markets have been … Continue reading August 2016 Housing Price Data for Xinyuan Real Estate’s Markets