Recent News from Xinyuan Real Estate in the Context of its Market Valuation

Xinyuan continues to trade at a below average Price/Book ratio due to its below average profitability.  If the company achieves operational improvements that raise net profit margins into a normal 10-15% range then the shares have 50-100% appreciation potential.  Steps that Xinyuan could take to improve its profitability (from Benchmarking Xinyuan Real Estate after its rally): … Continue reading Recent News from Xinyuan Real Estate in the Context of its Market Valuation

October 2016 Housing Price Data in Markets of Selected Chinese Property Developers

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 1.7% for the month and 18.2% from one year ago. Approximately 23 Chinese cities have introduced measures to stabilize markets, primarily by limiting demand through … Continue reading October 2016 Housing Price Data in Markets of Selected Chinese Property Developers

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

Vehicle sales in China were 18.7% higher in October than one year ago. October Passenger vehicle sales were 20.3% higher than one year ago  with continued support from the purchase tax reduction that began last October and will continue until the end of this year.  There's some speculation that the tax benefit will be extended to … Continue reading Impact of Recent Vehicle Sales Trends on US Listed Chinese Auto Suppliers (October Update)

China Property: Hot or Not?

Approximately 23 Chinese cities recently announced real estate policies intended to limit home price appreciation.  Headlines have noted soaring home prices in Shenzhen and a few other markets. Fortune: China's Property Boom Continues as Prices Rise at Record Rate WSJ: Chinese Cities Restrict Home Purchases to Cool Buying Frenzy SCMP: Regulators begin the delicate task … Continue reading China Property: Hot or Not?