“Developers would still have to deal with the fierce competition in sales and tight financial conditions themselves without any hope of policy help from the central government,” the brokerage said.
One of the few properties that BOCOM still rates a “Buy” is Shimao Property (0813.HK), a Shanghai-based company. “We think its sale performance was in-line with our expectation and the current valuation is still undervalued on the counter.” End
DAILY FIX -- Hong Kong Rally Continues
Hong Kong Blue Chips: +188, +1.0%, to 18,329, 10-12-11, Hang Seng Index
Chinese Stocks in Hong Kong: +198, +2.1% to 9,456, 10-12-11, HSCE Index
Shanghai Stocks: +3.0%, 2,420, 10-12-11, Shanghai Composite Index.
Chinese Stocks in the U.S.: +0.02, to 363.0, 10-11-11, Bank of New York Mellon, ADR Index-China
Insight: A strong rise in Chinese stock markets carried Hong Kong higher, extending its recent rally in moderately active trading. KGI Research
Quotable: "...the overall market sentiment was relatively strong. Particularly, 9-day RSI had already climbed back above 50 and the overall market turnover was relatively high to show the strength of the market. It might help the market to have better performance in short term." Core Pacific Yamaichi. 10-12-11
Chinese Companies to Watch: "Valuations of A-share and H-share banks have hit their historical low and deliver excellent mid-to long-term investment appeal, with H-share banks trading at only 5.42x P/E and 1.05x P/B on average. We maintain “Outperform” for the sector and recommend CCB (CICHY), MSB (CMAKY), CITIC Bank (CHCJY)...." BOCOM International. 10-11-11
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For a list of Chinese companies sold in the U.S. and information on each company go to http://www.adrbnymellon.com/dr_country_profile.jsp?country=CN
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