China Growth Stocks

[GorillaGorilla]

CD: Realty sector cooling off

Hall's viewpoint was echoed by Michael Wu, a director in Fitch's Asia-Pacific corporate team.

"The lending curb on second or additional residential property purchases will reduce demand from investors and speculators who may find it more difficult to finance their purchases. But demand from end-users will remain strong, particularly in second and third-tier cities, underpinned by China's continued urbanization and income growth," Wu said.

As property developers, especially those listed ones, remain awash with money from last year's sales boom, they are unlikely to cut prices in the short term," said Pan Shiyi, chairman of SOHO China. He estimated that around 70 percent of listed property developers have more than 10 billion yuan on hand, an amount that he said could allow these companies to operate for two to three years in a bearish market.

In a recent report, Fitch Ratings said the central government's recent real estate policies are expected to moderately cool market sentiment. However, the agency expects a limited impact on the existing rating levels of property developers, given their relatively strong balance sheets.


http://www.chinadaily.com.cn/business/2010-04/27/content_9778831.htm

Hmmm.. People seeing underlying demand & Sounds like builders will weather the storm.

rich