China Property Stocks Gauge Jumps on Proposal for Home Purchases
The shares of Chinese developers jumped on optimism that Beijing will provide policy support for the purchase of unsold homes from distressed builders.
Latest Videos
The information you requested is not available at this time, please check back again soon.
The shares of Chinese developers jumped on optimism that Beijing will provide policy support for the purchase of unsold homes from distressed builders.
China’s junk dollar bonds are rallying to their highest level in three years amid government efforts to shore up the bruised property sector.
Major miners in China’s biggest coal hub plan to raise output to rescue the local economy, which could help reverse this year’s rare drop in national production, according to the industry’s top association.
Hedge funds have little doubt that the Australian dollar is headed lower. The nation’s biggest banks beg to differ.
China’s economy likely continued to show signs of improvement in April, buoying the outlook for recovery as policymakers ramped up support.
Jul 15, 2016
BNN Bloomberg
,Ed Devlin sees shades of London, U.K. in the meteoric rise in Vancouver home prices. In an interview on BNN, PIMCO’s head of Canadian portfolio management said the influx of foreign cash could transform Vancouver in the same way it shaped the British capital.
“I thought 20 years ago London prices were lofty and probably unsustainable: how incorrect was that?” he said. “I think the same thing could go on [in Vancouver]: we could see multi-year or longer flow of capital into Vancouver because there are a whole bunch of reasons that very wealthy people would want to get their money out of China and into a safe haven, and Vancouver is well-positioned to be that safe haven.”
Devlin said there’s an obvious disconnect forming in the market as average home price gains easily outstrip wage growth in the city.
“When you look at the prices in Vancouver and you look at prices of houses versus average income, it’s pretty obvious that people with [Vancouver] income aren’t buying that [Vancouver] house,” he said. “It’s somebody else: it’s the foreign buyer coming in.”
Devlin said a major disruption of money flowing from Mainland China could put the brakes on price appreciation.
“The things we look at is what’s going on in China, is there some clampdown on corruption that intensifies capital flight or that shuts down capital flight, that would be one thing to look at,” he said.
Still, Devlin told BNN he isn’t ready to bet against the nation’s hottest housing market just yet.
“Calling the top in Vancouver right now is dangerous.”